American Airlines Merger: What’s Going to Happen Next?
Skift Take
Don't expect American Airlines to exit bankruptcy anytime soon. Emerging from bankruptcy without the merger issue resolved isn't an option.
After the Department of Justice's filing yesterday of its bombshell lawsuit to block the US Airways-American Airlines merger, the focus shifts to a Manhattan courtroom tomorrow where a hearing is still scheduled for 10 a.m. to consider confirmation of AMR Corp.'s bankruptcy plan.
Judge Sean Lane, as of this writing, at least, is slated to weigh giving final approval to the Debtors Second Amended Joint Chapter 11 plan, and to hear a bunch of objections from entities as diverse as former TWA pilots, and the U.S. Trustee, who believes AMR CEO Tom Horton's proposed $20 million severance is way over the top and inconsistent with bankruptcy law.
Horton's severance, though, may be a moot issue for awhile.
With the whole situation being very fluid, what's next regarding the merger process and prospects?
Bankruptcy
