Judge again delays American Airlines bankruptcy confirmation
By KYLE ARNOLD World Business Writer on Aug 29, 2013, at 11:40 AM Updated on 8/29/13 at 11:51 AM
American Airlines
Some travelers will encounter the most tangible evidence of the reboot of American Airlines on Monday when the airline begins flying its first Airbus A319 jets.
The American Airlines bankruptcy judge issued a written opinion Friday stating that he took the financial sacrifices made by union members into account when rejecting a $20 million severance deal for CEO Tom Horton.
The confirmation of American Airlines’ bankruptcy reorganization will hold until at least Sept. 12, judge Sean Lane said Thursday in New York federal bankruptcy court.
The bankruptcy court has been weighing what kind of impact a recent antitrust lawsuit from the U.S. Department of Justice would have on the bankruptcy reorganization, since the reorganization plan hinges entirely on a merger with US Airways.
But American Airlines lawyers argued that the court should confirm the reorganization plan, since it makes provisions for any changes stemming from the antitrust lawsuit.”
Lane however, did say he was persuaded by arguments in favor of confirming the plan.
American has been in bankruptcy since Nov. 29, 2011.
This is the second hearing where Lane has considered the bankruptcy plan, but again said he want to take more time to think about the Justice Department lawsuit.
The U.S. Department of Justice is seeking to permanently block the merger, saying it will hurt consumers after a decade of industry consolidation.
A U.S. District Judge will hold a meeting Thursday to decide when the antitrust trial against the American Airlines and US Airways merger could start. The airlines want to start arguments in November, while Justice Department officials are asking for a trial date in March.
American Airlines
Some travelers will encounter the most tangible evidence of the reboot of American Airlines on Monday when the airline begins flying its first Airbus A319 jets.
The American Airlines bankruptcy judge issued a written opinion Friday stating that he took the financial sacrifices made by union members into account when rejecting a $20 million severance deal for CEO Tom Horton.
