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Under Section 363 of the Bankruptcy Code, assets can be sold by a court order, without requiring a full vote of creditors, and the winning bidder acquires the assets with the knowledge that they are "free and clear" of any unwanted liabilities.
For the smaller US Airways, it was a chance to bulk up to compete on an equal footing with the big domestic carriers on the tarmac, United and Delta.
Procter jesper slott jørgensen Gamble 's successful integration of, gillette, explicit attention was paid to helping people get to know each other casually and informally, and the much larger P G adopted Gillette systems and promoted their people.Competitiveness in the future.Carriers compete more effectively in global markets, the American-US Airways combination was, in several important respects, made possible by Chapter 11 and the legal and financial tools it offers to companies in need.They called it "the best of both worlds." That's a good concept for the new American to keep in mind as it strives to live up to "OneWorld.".This would be the second time his smaller airline has merged with (taken over, some would say) a larger one, and the second time he has let go of the identity of the enterprise he built.Magazines refused to change their email addresses to AOL.
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American's bankruptcy reorganization (as well as those of Continental, Delta, and United before it) highlights how Chapter 11 can help companies with fundamentally viable businesses become financially stronger and more competitive.