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August 28, 2013

Unsecured creditors committee says DOJ is "completely wrong" to think American can survive on its own

The Unsecured Creditors Committee has weighed in on the U.S. Department of Justice's anti-trust lawsuit, asking the federal court to schedule a November trial date for the American Airlines-US Airways merger.

In a filing made on Wednesday, the UCC characterized the government's anti-trust arguments as "completely wrong," "fanciful," and "factually unsubstantiated."

The DOJ has asked the court to schedule an anti-trust trial in March, saying it needs the time to assemble evidence and experts for the case. The government has also argued that American's recent profitability points to a successful restructuring and that it could compete as a stand-alone carrier.

The UCC, which was instrumental during the merger negotiations, disagrees.

"The government is completely wrong to suggest that exacerbating the uncertainty regarding AMR's future is of no moment because AMR has a standalone plan of reorganization. On the contrary, AMR's current plan of reorganization, which is based on the Merger Agreement, is the only plan proposed to and voted on by creditors and stakeholders that is before the United States Bankruptcy Court for the Southern District of New York ("the Bankruptcy Court") presiding over AMR's pending Chapter 11 cases; there is no "Plan B" with regard to reorganization," the filing said.

Click here to Download the UCC filing made in federal court

-Andrea Ahles

 

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Comments

jimmerfrom30

The headline to this post is very misleading. The UCC is not saying that American can't survive on its own--they are saying that American does not have a standalone plan of reorganization.

John James

The UCC is correct. American won't be able to survive on its own if only for the reason that without a merger Tom Horton and the current management team would still be in charge making bad business decisions and keeping it a top heavy company. If the DoJ wants AA to try and become a stand alone carrier they should really push to have a whole new management team put in to place on Amon Carter Blvd.

whitey

JOHN JAMES. THIS IS VERY TRUE.GET RID OF ALL OF THEM.PUT THE CROOKS WHO STOLE MONEY IN PRISON.AND THROW THE KEYS AWAY!

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