Judge OKs American Restructuring Plan, But Merger Suit Looms

By Jens Flottau
Source: Aviation Week & Space Technology
September 16, 2013
Credit: Gerd Beilfuss/Airlinersgallery.com

After almost two years in Chapter 11 bankruptcy reorganization, American Airlines' restructuring plan has finally received court approval. But the bigger challenge lies ahead: convincing another court that its planned merger with US Airways is not anti-competitive.

U.S. Bankruptcy Judge Sean Lane, sitting in the Southern District of New York, approved American's reorganization plan Sept. 12, writing that it “is feasible if the merger succeeds” and would be put at unnecessary risk by delayed confirmation of the merger. The U.S. Justice Department is challenging the merger with an antitrust lawsuit scheduled to go to trial beginning Nov. 25 in U.S. District Court in Washington.

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