Bankruptcy Judge Hesitant to Approve AMR’s Bankruptcy Plan

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Bankruptcy Judge Hesitant to Approve AMR’s Bankruptcy Plan

by Joel R. Glucksman on August 27, 2013

The Justice Department's unexpected antitrust lawsuit that is designed to halt the merger of US Airways and American Airlines may interfere with the final confirmation of AMR's bankruptcy plan, a judge said in Thursday's hearing.

U.S. Bankruptcy Judge Sean Lane, who before this week was expected to give the final approval of AMR's bankruptcy plan, said that he has "lingering doubts" about approving the company's proposal while the merger was being challenged. Instead, he requested that attorneys for the airlines submit written briefs detailing the impact of the antitrust lawsuit before he proceeded with the plan-confirmation hearing. The request may further delay AMR's plan to formally exit bankruptcy protection, a key condition that must be met before any merger could take place. Attorneys for the airline said that the lawsuit should not stop the court from approving AMR's bankruptcy plan, The Associated Press reports.

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