Sky Writer: Updates on AMR's Bankruptcy Confirmation meeting

Updates on AMR's Bankruptcy Confirmation meeting

By KYLE ARNOLD Staff Writer on Aug 15, 2013, at 9:10 AM Updated on 8/15 at 4:02 PM

SKY WRITER

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Kyle Arnold

Follow @kylelarnold

918-581-8380
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2013/8/JUSTICE_AIRLINE_MERGER_7706641.JPG

A bankruptcy court in New York City is holding a confirmation hearing for AMR and American Airlines Thursday starting at 9 a.m. CST.

American Airline's (and AMR Corp.'s) confirmation hearing is just getting underway in New York today.

Judge Sean Lane has been hearing the case since Nov. 2011 and until this week many thought the case was close to finish.

But with the Justice Department opposing the merger, it's a mystery what will happen.

All we know is that lawyers for the companies are vowing the fight the lawsuit, which could postpone the merger for many months.

We'll update from here with the most recent info first.

To sum up bankruptcy court today: Lots of lawyers talking, no decision on @AmericanAir CEO Horton's pay, no decision on anything
— Scott Mayerowitz (@GlobeTrotScott) August 15, 2013

No ruling on @AmericanAir confirmation or Horton severance today, judge Lane sets next court hearing on 29Aug.
— Edward Russell (@e_russell) August 15, 2013

Whatever I decide is likely to be appealed, judge says on @AmericanAir CEO Horton;s severance.
— Jason Whitely (@JasonWhitely) August 15, 2013

US Trustee: Why should Horton be given $5-15 million more as a bankruptcy severance payment than he would have received before Ch. 11? #AMR
— John Bringardner (@johnbringardner) August 15, 2013

US Trustee atty on Horton payment package: "It should be denied and severed from the plan." @NBCDFW
— ScottGordonNBC5 (@ScottGordonNBC5) August 15, 2013

Attorney for US Trustee on Horton's $20M severance: Judge must decide payment complies with bankruptcy law. Lawyer says it does not.@NBCDFW
— ScottGordonNBC5 (@ScottGordonNBC5) August 15, 2013

Jack Butler continuing his impassioned plea for the judge to make a decision "based on THIS plan before the court." (re: Horton's payment)
— APFA (@APFAunity) August 15, 2013

Creditors' committee lawyer Jack Butler up now, defending bonus. It was the committee, not #AMR, that first proposed the $20M figure.
— John Bringardner (@johnbringardner) August 15, 2013

...and those synergies could not have been realized without Horton's help. Judge Lane is still skeptical. #AMR
— John Bringardner (@johnbringardner) August 15, 2013

AMR lawyer's argument in favor of Horton's bonus boils down to a simple equation: "realization of synergies" is worth $20M.
— John Bringardner (@johnbringardner) August 15, 2013

.@americanair lawyer on Horton's $20M payment: "This is not an administrative expense. It's a different situation." @NBCDFW
— ScottGordonNBC5 (@ScottGordonNBC5) August 15, 2013

.@americanair lawyer saying Horton will be chairman of board of new entity and involved in integration of merger. @NBCDFW
— ScottGordonNBC5 (@ScottGordonNBC5) August 15, 2013

AA attorney: Executives are not "lining their pockets," as law intended to prevent. @NBCDFW
— ScottGordonNBC5 (@ScottGordonNBC5) August 15, 2013

AA Att'y: "The value brought to the reorganization by Mr. Horton ..." merits his $20 million. (cont) http://t.co/pvDXf6iofD
— APFA (@APFAunity) August 15, 2013

.@AmericanAir lawyer Karotkin calls recoveries for stock holders and creditors "extroardinary", says Horton severance no impact
— Edward Russell (@e_russell) August 15, 2013

Bankruptcy judge breaks for lunch til 1:45; Horton's severance up this afternoon
— Scott Mayerowitz (@GlobeTrotScott) August 15, 2013

Still under discussion is an objection to closing the merger today - filed by a Calif. atty who says merger will drive up fares.
— Jason Whitely (@JasonWhitely) August 15, 2013

Judge Lane says he may rule today, he may rule two weeks from today. “I’m going to reserve judgment on that.”
— Terry Maxon (@tmaxon) August 15, 2013

#AMR lawyer: Nothing in this plan is implicated by the DOJ suit, the plan only goes into effect if the merger closes.
— John Bringardner (@johnbringardner) August 15, 2013

Butler's position is that if the DOJ's objection prevails, there will then be a different plan. But what we (cont) http://t.co/UpZRJHhOHv
— APFA (@APFAunity) August 15, 2013

Lawyer for @AmericanAir creditors: Most of the regulatory approval received. Only DOJ and DOT outstanding. Yep, "ONLY" those BIG 2
— Scott Mayerowitz (@GlobeTrotScott) August 15, 2013

Attorney for unsecured creditors urging judge to ignore objections and approve reorganization plan.
— ScottGordonNBC5 (@ScottGordonNBC5) August 15, 2013

AA lawyer: Don't want merger issue "commingled" with bankruptcy. Of course, merger is key part of bankruptcy restructuring plan.
— ScottGordonNBC5 (@ScottGordonNBC5) August 15, 2013

Attorney in private antitrust lawsuit wants judge to delay #AmericanAir decision; judge says he should have filed motion laying it out.
— Terry Maxon (@tmaxon) August 15, 2013

Judge Lane: The plan doesn’t change #AmericanAir retiree benefits, so that issue isn’t a reason to block plan confirmation.
— Terry Maxon (@tmaxon) August 15, 2013

Judge Lane sees no reason to delay #AmericanAir plan decision while TWA pilots appeal their objections to plan.
— Terry Maxon (@tmaxon) August 15, 2013

@AmericanAir's Karotkin: Objections remain from Mich tax officials, TWA pilots, individuals, US Trustee, private antitrust lawsuit
— Terry Maxon (@tmaxon) August 15, 2013

@AmericanAir lawyer says dispute over $20 million payment to CEO Tom Horton has not been resolved. Some other issues resolved. @NBCDFW
— ScottGordonNBC5 (@ScottGordonNBC5) August 15, 2013

The @AmericanAir bankruptcy must have killed a few trees - lawyers on page 77 of a 300 page document now. 1st of MANY docs today
— Scott Mayerowitz (@GlobeTrotScott) August 15, 2013

U.S. Trustee is in audience, waiting for change to argument against @AmericanAir Horton severance, other matters
— Terry Maxon (@tmaxon) August 15, 2013

@AmericanAir attorney is pointing out creditors overwhelmingly approved reorganization plan. @NBCDFW
— ScottGordonNBC5 (@ScottGordonNBC5) August 15, 2013

#AMR lawyer Stephen Karotkin: DOJ suit is not an impediment to confirmation of the plan today, but it is impediment to closing of merger.
— John Bringardner (@johnbringardner) August 15, 2013

AA lawyer: The DOJ lawsuit doesn't prevent approval of the plan of reorg, just delays an effective date. So let's go ahead.
— Terry Maxon (@tmaxon) August 15, 2013

.@AmericanAir judge considered cancelling the hearing but chooses to proceed. He wants briefs from all the attys on impact of DOJ lawsuit.
— Jason Whitely (@JasonWhitely) August 15, 2013

Judge will allow 1-day hearing "but I have lingering doubts if this approach is the most prudent." @AmericanAir @NBCDFW
— ScottGordonNBC5 (@ScottGordonNBC5) August 15, 2013

Judge Lane's chambers reached out to @AmericanAir after DOJ suit filed to see if wanted to proceed w/ hearing, they did...
— Edward Russell (@e_russell)
August 15, 2013

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SKY WRITER

Southwest flyers will now get "dinged" for missed flights

Southwest Airlines started enforcing its new No Show Policy Friday, meaning that customers on nonrefundable fares that didn’t ...

Airlines, DOJ lays out timeline for antitrust trial

With a Nov. 25 trial date set in the anti-trust lawsuit against the merger of American Airlines and U.S. Airways, the airlines ...

Spirit Aerosystems cutting more jobs in Wichita

Spirit Aerosystems’ Wichita operation is trimming more employees as the aerospace manufacturer undergoes massive changes ...

CONTACT THE BLOGGER

Kyle Arnold

Follow @kylelarnold

918-581-8380
Email

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