Update:

MAG has filed a "Motion to Extend Time Motion for Order Extending the Time Periods During Which the Debtors Have the Exclusive Right to File a Plan and Solicit Acceptances".

These extensions are not abnormal in large Chapter 11 cases. MAG claims that the extensions are needed primarily due to the "size and complexity of the case" and "not a negotiation tactic".

They request an extension to filing a plan from May 5th to September 2nd. They have also requested to extend the Exclusive Solicitaion Period from July 6th to November 3rd.

The motion includes a good summary of their progress of reorganization:


(i) continue existing cash management systems,
(ii) maintain insurance programs,
(iii) pay certain prepetition claims of employees and maintain the related benefit programs,
(iv) pay certain prepetition claims of lienholders and foreign vendors,
(v) maintain existing customer programs, and
(vi) implement procedures relating to the protection of the Debtors’ valuable net operating loss tax attributes;

(i) abandoning 20 aircraft pursuant to a first day motion;
(ii) obtaining Court authorization to implement procedures regarding (a) elections under section 1110(a) and (b) of the Bankruptcy Code and (b) the rejection of aircraft related leases and abandonment of aircraft subject to security agreements;
(iii) negotiating 25 section 1110(b) stipulations with respect to 124 aircraft and 16 engines;
(iv) making 8 elections under section 1110(a) to perform under the related aircraft agreement with respect to 34 aircraft and 13 engines; and
(v) having served three notices of rejection for certain aircraft related agreements;

Established procedures for
(i) the settlement of reclamation claims filed pursuant to section 546 of the Bankruptcy Code,
(ii) the sale of certain de minimis assets, and
(iii) the settlement of certain general unsecured claims;

The Debtors have filed a motion (the “Delta Codeshare Motion”) to assume their codeshare agreement with Delta Airlines, Inc. (“Delta”), which motion is related to the resolution of certain prepetition litigation between the parties currently pending before both this Court and in the United States District Court for the Northern District of Georgia. The Debtors and Delta have already engaged in extensive discovery and are currently preparing for trial on the Delta Codeshare Motion, which trial is scheduled to take place on July 12, 2010 before this Court.

Filed the Debtors’ schedules of assets and liabilities and statements of financial affairs;

Continue to file the Debtors’ monthly operating reports;

Taken action where appropriate to enforce the automatic stay;

Established regular and frequent communications with numerous parties in interest, including the Creditors’ Committee, numerous aircraft vendors and lessors; and

Addressed numerous issues with their suppliers and vendors to ensure that the Debtors continue to operate in chapter 11."

winglet