Basically a sound company but struggling financially and in danger of going bust.
Then it's not a sound company, is it?
If an airline goes bust, chapter 7 bankruptcy, then all of its employees are out of work. They may get jobs with other companies. But they will start out at the bottom.
So what is the difference, if a bankrupt airline is bought out of the bankruptcy court because the judge thinks that gives the best return to the creditors? After all, that is the only way the company is being bought. If the judge thought the creditors would be better served by liquidation, then that's what would happen.
Completely different when two healthy companies merge, but that's not the case with AA.