Bankruptcy

Pan Am Comes in for Final Landing

Grounded since 1991, the venerable airline is getting ready to close its doors for good.
Stephen TaubAugust 16, 2006

Thought Pan Am World Airways was grounded years ago?

Not quite.

The airline filed for bankruptcy in January 1991 and ceased operations in December of that year.

However, it continued to exist as a corporation in bankruptcy.

The airline, which took off for the first time in 1927, said Wednesday it will collect $30 million from the Libyan government stemming from the 1988 bombing of flight 103 over Scotland, according to the Associated Press.

It will then make final payments to creditors by the end of the year, officially ending the company’s bankruptcy, the wire service added.

According to the AP, roughly 15,000 ex-employees of Pan Am are among the creditors who figure to receive some of the distributions.