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August 29, 2013

Bankruptcy judge delays ruling on confirming AMR restructuring plan to Sept. 12

U.S. bankruptcy judge Sean Lane said he plans to rule on whether or not to confirm AMR's restructuring plan on September 12.

It appears that Lane is leaning towards confirming the plan which includes a merger with US Airways.

"I’m finding the arguments in favor of confirmation fairly persuasive," Lane said from the bench, according to an Associated Press report.

Lane heard oral arguments from airline attorneys and other interested parties at a hearing in New York on Thursday. Written arguments were submitted to Lane last week on the restructuring plan.

"We are pleased the judge found our arguments in favor of confirmation persuasive. While we await the Court’s decision on our Plan of Reorganization, we are focused on the need for a mid-November trial and challenging the DOJ’s position so we can complete our planned merger with US Airways," said American spokesman Mike Trevino in a statement.

American Airlines' attorneys have argued that the judge can confirm the plan even though the Department of Justice has filed an anti-trust suit to stop the merger. There is a hearing scheduled in Washington D.C. to determine when the anti-trust trial will be scheduled.

-Andrea Ahles


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