American Airlines has cancelled hundreds of flights in recent weeks with more on the horizon. The company reported that nearly 300 flights were cancelled to cope with the increasing number of pilots who are reporting sick and crews who are repeatedly filling maintenance reports. The recent changes seem to have developed from the company’s Chapter 11 bankruptcy. A bankruptcy ruling earlier this month allowed the company to throw out its union contract with pilots, allowing the company to impose new regulations on the wages of the pilots as well as on their work schedules. Further cutting costs, the company has also announced 11,000 layoff notices. The result of the turmoil has caused American Airlines to cancel the largest number of flights ever compared to any other U.S airline. The company is trying to cushion the passengers from the effects of the cancellation of flights. It is doing this by letting passengers fly standby for earlier flights at no extra charge. The company has also let the crew be more flexible with the snacks during flights; the passengers are now getting more snacks in a bid to relax them during delays. AMR Corp, the company that owns both American and Eagle,… Continue reading
A deal struck outside a Rochester courtroom on Sept 27 likely saved the season for the Elmira Jackals hockey team. The season, scheduled to begin October 12, was in jeopardy due to an ongoing dispute over First Arena, where the Jackals play, and a Chapter 11bankruptcy proceeding filed by the arena’s former operator. The interim agreement reinstates Elmira Downtown Arena LLC (EDA) as the arena operator and preserves hockey in Elmira. In July, First Arena’s owner terminated its agreement with EDA, which is controlled by the same Michigan businessman who owns the Jackals. This led to a legal proceeding to determine whether the Jackals could play in the arena this season. EDA filed for Chapter 11 bankruptcy in August, automatically halting the other legal proceeding. Elm Arena LLC, which has taken over the arena’s mortgage and is under contract to become the new owner, then sought payments from EDA under the bankruptcy rules for protection against the arena’s depreciation. If no agreement was reached, the new owner was prepared to ask the bankruptcy judge to keep EDA and the Jackals out. Under the agreement, EDA will make $18,000 monthly payments to Elm Arena, maintain adequate insurance on the facility, and properly… Continue reading
In a surprising move that occurs just over a year after its grand opening, Metro Biofuels is filing for bankruptcy along with its parent company, Metro Fuel Oil Corp., and eight subsidiaries. The company has a large facility at Enterprise Park in Calverton. The corporation plans to continue doing business during the course of the Chapter 11bankruptcy, and the bankruptcy court has made $3 million in financing available in addition to its normal revenue to keep the company running. Metro supplies and delivers biofuel alternatives and natural gas through the stimulus-funded rail spur leading to the Calverton facility. The company reportedly has $100 million in debt — about twice the amount of its assets. However, Metro Fuel Oil still hopes to raise capital and funds to meet its obligations and continue to supply products to residents and businesses in the area. Business bankruptcy filings are not always indicative of a hopeless business situation. In fact, in many instances, companies that have been caught in circumstances due to market shifts can file for Chapter 11 reorganization to allow creditors to secure their positions and to reduce their debt load so that they can keep operating at peak capacity and making money to… Continue reading
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