Munger Tolles Secures Settlement for Boeing to Recoup Aircraft

The United States Bankruptcy Court for the District of Delaware approved a settlement June 13 between Munger, Tolles & Olson client The Boeing Company and a subcontractor Alabama Aircraft Industries, Inc. Boeing had a contract with the U.S. Air Force to provide refurbishment and maintenance services on a fleet of U.S.-owned KC-135 aircraft, which the Air Force uses to fuel military aircraft during flight. Boeing subcontracted some of the work with Alabama Aircraft, which subsequently entered bankruptcy and did not complete maintenance for two aircraft. 

Under the terms of the settlement, Alabama Aircraft is to prepare the aircraft for a one-time flight to San Antonio to allow Boeing to complete the remaining work. Boeing also has the right to recover the aircraft, if Alabama Aircraft does not comply with the settlement terms. 

The Munger Tolles team working on the case included Brad D. Brian, Kristin Linsley Myles, Seth Goldman and Aaron G. Leiderman.