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US: DOJ airline suit throws wrench in AMR restructuring plans

By  |  August 16, 2013
US: DOJ airline suit throws wrench in AMR restructuring plans

A bankruptcy judge delayed an approval of the restructuring for AMR’s restructuring plan for American Airlines, citing the Department of Justice’s lawsuit filed to block American’s proposed merger with US Airways filed last week. The acquisition of US Airways, which is on course to result in the world’s largest airline, is part of AMR’s wider agenda to exit bankruptcy, a status held since 2011. Plans were thwarted when the DOJ sued to block the $11 billion deal last Tuesday, however. Bankruptcy Judge Sean Lane was expected to approve of the restructuring deal last Thursday were it not for the government’s lawsuit. Now, AMR has until August 23 to submit briefs for the judge with more information on why the restructuring plan is appropriate in the light of the DOJ’s lawsuit.

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