When a company files for bankruptcy, some interesting things can come up in the listing of assets. Like say, a London townhouse that could be worth up to $30 million — which was listed in American Airlines’ recent Chapter 11 bankruptcy filing.
So what would an airline company even need with such an extravagance? As a travel home for senior executives, of course, reports Reuters, as well as for “corporate functions from time to time.” The five-bedroom house is in one of London’s poshest neighborhoods, Kensington, just a few blocks from where Princess Diana lived.
The home was bought in the early 1990s and is listed as “London Residence LON6526,” and is one of eight properties American Airlines’ parent company AMR lists in the filing. While $30 million might not be much compared to the $30 billion or so in liabilities the company is buried under, perhaps curtailing such expenditures in the first place would’ve been a good thing to do.
At a time when others are worried about keeping less costly homes over their heads, the existence of the house is causing a bit of an uproar.
“In the current economic downturn, many Americans have lost their houses. In this bankruptcy, AMR’s executives should lose their house,” said James C. Little, president of the 200,000-member Transport Workers Union of America, which is on the airline’s creditors’ committee.
“However, the typical pattern for this company is workers keep it afloat through concessions, bring in outside work and boost productivity while managers pocket hundreds of millions in bonuses and live posh lifestyles. This would have been Marie Antoinette’s favorite airline.”
The $30 million price tag is a high estimate, but even if were to go for half of that on today’s market, it’s still too many millions for a company that’s flailing around in bankruptcy.