Not necessarily true. Most bankruptcy laws protect firms liked United Airlines from creditors from taking normal recourse for unpaid debts at the time of filing. (Hence the term "court-protection".) This means leasing companies can't repossess planes. BUT, to receive that protection, the court must be convinced that the firm has a good chance of exiting bankruptcy before being granted such protection. This usually means that the firm must file regular updates with the court, and usually a reorganization plan within a reasonable time. The way it works with most large firms, like GECAS, ILFC, especially in a climate like this, is that taking a loss any outstanding bills at the time of bankruptcy protection filing is worth it in order to maintain ongoing business with the firm. Leasing payments, fuel bills etc incurred after bankruptcy filing are usually paid, though quickly negotiated to lower rates (commonly retroactively in the case of plane leases.) United can make more money for GECAS than GECAS can. By law, employees are required to be paid. This requires significant cooperation from the creditors. But there sometimes reaches a point where the creditors believe the firm is worth more dead than alive. I believe Air Canada's creditors are reaching that point and will soon ask the court to liquidate the airline. (In the US, it's called a Chapter 7 proceeding.) Matthew On Monday, September 1, 2003, at 09:29 PM, Alireza Alivandivafa wrote: > They will try anything to avoid paying their bills