American Airlines creditors get in line



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Posted on December 13, 2011 at 7:31 PM

Updated Tuesday, Dec 13 at 8:08 PM

The parties involved in the American Airlines bankruptcy case are getting to know each other before things get ugly.

In a New York courtroom Tuesday, a bankruptcy judge heard from the lawyer for the creditors' committee for the first time. According to Bloomberg News, their meeting was short, polite, and sweet.

The creditors' committee was formed last week. It consists of the airline's unions: the pilots, flight attendants and transport workers.

Other interested parties are also part of the group, including banks; computer-maker Hewlett Packard; and aircraft supplier Boeing.

On Monday, American's parent company, AMR Corp., asked the court to let it continue receiving new aircraft from Boeing.

What happened Tuesday was related to who gets to stand in line where to get paid by AMR.

Unsecured creditors who were owned money before the bankruptcy want to get get their money first, and that process is just beginning.

The legal wrangling will continue next week.