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August 23, 2013

DOJ tells bankruptcy judge it takes "no position" on confirming American's restructuring plan

In a three-page filing made to the bankruptcy court on Friday, the U.S. Department of Justice takes no position on whether or not the bankruptcy judge should confirm or deny American Airlines' parent company's restructuring plan.

The plan, which includes a merger with US Airways, would need to be approved by the judge before the Fort Worth-based carrier exits bankruptcy. However, when the Justice Department filed its anti-trust lawsuit to stop the merger last week, the bankruptcy judge delayed making a decision on the restructuring plan.

"The United States takes no position as to whether the Debtors' Plan should be confirmed now, notwithstanding the pendency of the antitrust suit and the attendant risk that a confirmed plan may not be able to become effective for a considerable time, if at all," the filing said.

The DOJ said it made Friday's filing to give bankruptcy judge Sean Lane some background regarding the anti-trust suit. In the filing, the DOJ said it wants to have an anti-trust trial in early 2014 since these types of cases "require extensive fact and expert discovery" and it needs a significant amount of time to litigate the suit.

Click here to see the full filing.

-Andrea Ahles

 

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