Originally Posted by
ForeverFO
Thanks for the clarification. Ultimately, all it means is that it's gone and will never come back. I can't see the courts forcing AMR to make the lump sum a reality again.
If the court does nothing the lump sum option returns the day the company exits chapter 11 if the plan has sufficient funding to not be considered in distress by the PBGC. It appears from the funding levels posted here the plan is well above that threshold. The companies only option is to get the court to modify the plan in chapter 11. There are standards for such a modification. I am not sure the plan would meet those standards so what the court rules could be interesting. I don't think the court can consider manning issues at the airline in making the decision however judges in Chapter 11 cases are often given almost god like latitude in making rulings so who knows.