Expensive bankruptcy fees have caused American Airlines’ parent company AMR Corp. to post a net loss of $82 million for the month of August. The company filed for Chapter 11 bankruptcy protection in November and paid $86 million in reorganization fees for August alone.
According to BusinessWeek, the Fort Worth-based airline saw its operating revenue drop six percent from July, along with its operating income. Had AMR not been forced to pay bankruptcy fees, it would have posted a net profit of $4 million.
August broke its two-month trend of making monthly profits. When AMR filed for bankruptcy last year, it reported $29.6 billion in liabilities and $24.7 billion in assets.
If you are wondering if Chapter 11 is right for your business, contact bankruptcy lawyer Adam G. Young, PLC today by calling 337-261-8800.