Just to emphasize the key part of the above post, at least in the context of the poster:
Now let us proceed in clearing up the issue of TWA’s third bankruptcy, as both the FastRead and JetBlue letter
contain references to it. Here I speak from a position of authority as I was the pilots’ representative to the TWA
Board of Directors. That bankruptcy was a requirement of the Asset Purchase Agreement. From that agreement:
“WHEREAS, TWA intends to file, and to cause each of the other Chapter 11 Sellers (as defined in
Exhibit A) to file, voluntary petitions for reorganization pursuant to chapter 11 of title 11 of the United States
Code, 11 U.S.C. Sections 101 et seq. (the “Bankruptcy Code”)…” (emphasis mine).
The reason for this requirement was for American Airlines to not have to inherit the onerous Karabu Agreement
with Carl Icahn. And while bankruptcy previously had the stigma of a firm in poor financial health, it no longer is; it
is simply another business tool as you probably learned during the UAL and DAL bankruptcies.
TWA was NOT faced with “liquidation.” Period