Judge Won’t Let Bankrupt AMR Terminate Retiree Benefits

An effort by the bankrupt American Airlines parent, AMR, to unilaterally terminate benefits for 47,000 retirees was blocked  late last week, when a bankruptcy judge said agreements with most of those workers “lack language categorically reserving the plaintiffs’ right to terminate their contributions to the retiree benefits.” AMR Corp. has sought reorganized contracts with current and former employees as part of a bid to shed $1 billion in labor costs after filing for Chapter 11 bankruptcy in 2011.