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October 21, 2013

Bankruptcy judge issues written confirmation of American restructuring plan

Although U.S. Bankruptcy Judge Sean Lane already verbally confirmed AMR Corp.'s restructuring plan to emerge from bankruptcy in early September, the judge made his decision offical with a written ruling filed in court on Monday.

The 76-page filing, which can be found here, illustrates how American Airlines' parent company has met all of the technical, legal requirements with its restructuring plan. 

However, the judge included the caveat that the restructuring plan is still pending government approval and noted there is an antitrust case filed by U.S. Department of Justice that could derail AMR's merger plan with US Airways.

"Nothing in this Confirmation Order shall be construed as an adjudication of any causes of action asserted in the DOJ Action or as otherwise expressing the Court’s position with respect to the DOJ Action. In the event that the Debtors and US Airways reach a settlement of the DOJ Action, the Debtors shall file a motion with the Court seeking approval of the Debtors’ execution of and entry into such settlement. In addition to determining whether to approve any such settlement under Bankruptcy Rule 9019(a), the Court shall determine whether the settlement would materially and adversely affect the treatment of holders of Claims and AMR Equity Interests under the Plan such that the Court should require the re-solicitation of such holders’ previous acceptances or rejections of the Plan," the filing said.

-Andrea Ahles

 

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