By KYLE ARNOLD Staff Writer on Jul 29, 2013, at 10:07 AM Updated on 7/30 at 11:37 AM
Hillary Anoke performs work on an overhall on an aircraft at the American Airlines Maintenance Base in Tulsa, OK, Feb. 14, 2013. STEPHEN PINGRY/Tulsa World
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The next two days are huge in AMR Corp. and American Airlines’ bid to emerge from bankruptcy and merge with US Airways.
Monday at 5 p.m. eastern time is the deadline for creditors to turn in their ballots to the U.S. Bankruptcy Court for the Southern District of New York and Tuesday at 5 p.m. is the deadline for any parties to file objections to the official plan of reorganization.
It’s unclear exactly how quickly we’ll learn of the voting results and whether AMR will be allowed to release to vote totals immediately or whether an auditing group will have to verify the outcome.
To be honest no one expects creditors to shoot down the deal. Terms of the merger call for debt holders to be paid back 100 percent. Actually the Official Committee of Unsecured Creditors and other bankruptcy groups
have already recommended that debt holders give their approval to the deal.
By now most of the debt has been transferred to a handful of holding companies that specialize in bankruptcy finance.
The bigger question will be how many groups object to the reorganization plan, particularly U.S. Trustee Tracy Hope Davis, who has staunchly opposed AMR CEO Tom Horton’s $20 million severance deal from American Airlines.
Judge Sean Lane has repeatedly pushed back his decision on the severance until later dates, but with the confirmation hearing less than three weeks away, time is drawing close.
Objections have been limited since debt holders started voting earlier this month.
But the question over Horton’s payout (
see more here) may have to wait until Aug. 15.
Correction: An earlier version of the blog post said that Lane said that the payout to CEO Tom Horton was illegal. At a March hearing, Lane actually said that he could not approve that portion of AMR's merger plan at that time and that he would hear arguments on the issue at a later date.
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