American Airlines wants until May 29 to file reorganization plan
BY KYLE ARNOLD World Staff Writer
Friday, March 15, 2013
3/15/13 at 7:11 AM
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American Airlines' parent company is asking for six more weeks to get together its bankruptcy reorganization plan, according to court filings Thursday.
As part of the increasingly complex case to settle debts and emerge as a profitable carrier, AMR Corp. has asked to push the deadline to May 29 to submit their reorganization plan to Judge Sean Lane in the U.S. Bankruptcy Court for the Southern District of New York.
"The additional time will allow us to complete the final steps of our successful reorganization - the formulation, proposal and confirmation of a plan of reorganization that implements the proposed merger with US Airways," a letter to some American Airlines employees stated.
The motion would extend AMR's right to exclusively develop a bankruptcy plan to return the company to profitability.
Fort Worth-based AMR has been operating under the exclusivity agreement since filing for bankruptcy in November 2011, but the company contends that the evolving case, especially the February merger deal forged with US Airways, adds new details that will take more time to work out.
Lane is expected to take up the motion in a March 27 hearing where he will also consider a motion to approve the merger, forming a new company called American Airlines.
Even with the hearing, Lane does not have to make a ruling on the merger or the extension for the reorganization plan. That could come at a later date.
This would be the last time AMR could be granted an extension for its reorganization plan, as it is running up against the 18-month limit in U.S. Bankruptcy Code.
The bankruptcy has resulted in billions of dollars in cuts, including concessions from the 6,200 workers at the American Airlines maintenance base in Tulsa.
The merger would create the world's largest airline, with 100,000 employees and 900 routes. US Airways CEO Doug Parker would head the new company, with American Airlines CEO Tom Horton moving into the position of chairman before departing later.
The two companies have only recently begun to appoint people to head a merger transition committee.
Key dates in the American Airlines bankruptcy case
March 15: Deadline to file objections to US Airways proposal
March 27: Hearing to consider merger and other matters
April 15: Current deadline for AMR Corp. to file bankruptcy reorganization plan
May 29: Proposed deadline for reorganization plan
Sept. 30: AMR and US Airways plan to close merger before this date
Original Print Headline: AMR seeks more time for bankruptcy plan
Kyle Arnold 918-581-8380