Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Bankruptcy Judge Approves Sales of Luxury American Airlines London Townhouse
Author: Joel R. Glucksman
Date: January 11, 2013
Key Contacts
Back
A $23 million London townhouse owned by distressed company American Airlines will be sold in the coming weeks, following unions’ outrage that the company still retained the luxury residence throughout bankruptcy proceedings.
U.S. Bankruptcy Judge Sean Lane approved the sale of the five-bedroom house, which is located in an upscale neighborhood a short distance from Kensington Palace, where Prince William and Kate Middleton reside. The airline purchased the townhome in the early 1990s, and it has been used as a residence for executives “responsible for American’s international operations and for corporate functions,” said airline spokesman Sean Collins.
The airline’s unions expressed anger over the company’s decision to maintain the residence during proceedings as workers agreed to wage cuts and concessions to help keep the company afloat. Following the court’s approval of the sale to a cash buyer willing to pay 14.2 million British pounds, the unions said they are pleased with the decision. The Transport Workers Union chief James Little said that while the sale should have been completed earlier, he is pleased that the property will finally be unloaded.
“A year ago, when this ritzy asset showed up on AMR’s books, I said that when so many American Airlines workers were losing their homes it was outrageous for executives to be living in such a posh residence,” said Little. “At the time, I said American Airlines would have been Marie Antoinette’s favorite airline.”
American Airlines filed for protection under bankruptcy law in November 2011, and has since faced an onslaught of legal complications due to labor issues and embittered contract disputes with several unions.
If you face bankruptcy issues in your business, please call me.
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Navigating Director and Officer Liability in Times of Financial Distress
Director and officer liability increases sharply when a company is in financial distress. Decisions that would draw little attention in a healthy business can later be challenged by creditors, shareholders, bankruptcy trustees, and regulators as breaches of fiduciary duty, fraudulent transfers, or oversight failures. Understanding where that exposure comes from, and how to manage it, […]
Author: Michael Mietlicki
Before You Buy: Managing Real Estate and Permitting Risk for BESS Projects in New York and New Jersey
For developers pursuing battery energy storage system (BESS) projects, finding the right property is only the beginning. BESS site selection is as much a legal and transactional exercise as a real estate decision, with risk analysis central to the project’s ultimate success. Key Takeaways The core questions for BESS site selection in New York and […]
Author: Nicholas Wall
What Business Owners Get Wrong Before Meeting a Litigation Attorney
What should you expect when meeting a litigation attorney about a business dispute? You should expect to describe the dispute in your own words, hand over the most important documents, flag any deadlines or immediate threats, and leave with a clearer picture of the problem, what information is still needed, and the likely next steps. […]
Author: Michael Mietlicki
Arbitration vs. Litigation vs. Mediation: What New Jersey Businesses Should Know Before Signing a Contract
Arbitration resolves disputes privately before an arbitrator whose decision is usually final, while litigation resolves them in court with full rights of appeal. Whether a business ends up in arbitration or litigation is often decided when it signs the contract, long before any dispute arises. Key Takeaways When facing a contract dispute, carefully consider your […]
Author: Graham Staton
Can You Own Part of a New Jersey Business Without a Written Agreement?
Can you own part of a business in New Jersey without a written agreement? Yes, it is possible. Under New Jersey’s Uniform Partnership Act, a partnership can arise when two or more people carry on a business as co-owners for profit, whether or not they ever intended to form one. Ownership doesn’t necessarily depend on […]
Author: Michael Mietlicki
Crisis-Proofing Your New Jersey Business: Building a Crisis Response Plan Before You Need One
For New Jersey businesses, crisis preparedness should be viewed as a legal and operational function, not simply an emergency-management exercise. A well-designed crisis response plan can help preserve evidence, protect confidential communications, meet reporting obligations, limit unnecessary exposure, and prevent an already difficult situation from becoming a larger legal problem. Key Takeaways A serious crisis […]
Author: Sean M. Pena
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.