American Airlines Wins Court Approval to Exit Bankruptcy

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American Airlines Wins Court Approval to Exit Bankruptcy

by Joel R. Glucksman on September 26, 2013

A federal bankruptcy judge has approved American Airlines' reorganization plan, as well as its merger with US Airways, the latter contingent upon the outcome of the U.S. Department of Justice's antitrust lawsuit.

U.S. Bankruptcy Judge Sean Lane said that American Airlines' arguments were persuasive and that the broad support the plan had garnered from AMR Corp, its unsecured creditors committee, and American's labor unions "could be put at risk if the confirmation is delayed," the Philadelphia Inquirer reports. Lane, who had previously expressed concerns about permitting the company to exit proceedings following the Justice Department's antitrust challenge, said that his job was to determine whether the bankruptcy plan meets the standards of feasibility set forth

under the bankruptcy law, regardless of separate lawsuits such as that by the Justice Department.

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Published In: Bankruptcy Updates, Finance & Banking Updates, Labor & Employment Updates, Tax Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Joel Glucksman, Scarinci Hollenbeck | Attorney Advertising

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