Knafaim: Despite bankruptcy American Airlines planes lease continues

American Airlines leases one Boeing 767-300 and five MD-82s from Knafaim.

Knafaim Holdings Ltd. (TASE: KNFM) subsidiary Global Knafaim Ltd. today notified the TASE that American Airlines will continue to lease six passenger planes, despite its filing for Chapter 11 bankruptcy protection in November 2011. American Airlines leases one Boeing 767-300 and five MD-82s from Knafaim. The leases expire in 2014-15.

Knafaim and American Airlines reached an agreement to extend the 60-day period for reaching a settlement under US law, during which time American Airlines will continue to pay the leasing fees for the planes to Global Knafaim. Knafaim added that the leasing fees are the accepted fees in the market, and will total just over half of the fees that American Airlines paid the company before it filed for bankruptcy protection.

The companies submitted the agreement to the US Bankruptcy Court Southern District of New York in Manhattan on Monday, and the court has scheduled a hearing on it for February 2.

Published by Globes [online], Israel business news - www.globes-online.com - on January 25, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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