Bankruptcy Judge Approves American-US Air Merger — But Antitrust Suit Still a Hurdle

An antitrust lawsuit challenging the deal is the final hurdle

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Jim Watson / AFP / Getty Images

A Manhattan bankruptcy judge gave his approval Thursday for the merger of US Airways with AMR Corp., the parent company of American Airlines, The Wall Street Journal Reports. The Justice Department’s antitrust suit still stands in the way of the merger, however.

“The broad support of this plan could be put at unnecessary risk if confirmation is delayed,” the judge reportedly said.

In approving the union, the judge nullified a proposed $19.9 million severance payment to outgoing AMR CEO Tom Horton, according to the Journal.

The antitrust suit filed by the Justice Department is the final obstacle for the merger to go through. The antitrust trial is set to begin November 25.

[The Wall Street Journal]

5 comments
4714026
4714026

and after all, who says the planes have to be maintained ?

they're expensive things, they must be ok for a couple of years

forget about maintaining the planes

there is no LAW that says the planes have to be maintained

the lawyers said they could do that in China, you know, later when there is some money for that

shouldn't be a problem, some of them over there in China can probably read the manuals

just as well the mechanics' salaries were converted into bonus for the pilots

bonus the lawyers for that too

we don't want THEM walking away feeling like THEY were shortchanged

oops, you wrecked American Airlines

4714026
4714026

let's see, Texas got hurt, (that's where the mechanics mostly are) the lawyers should get some kind of bonus for that

Boeing got hurt, and they make planes in a right-to-work state - the lawyers should get some kind of bonus for that, for huting Boeing

Airbus got escorted in very nicely, very nicely.   the lawyers should get some kind of bonus for that

they kept things real quiet about the tax assets - bonus for that too, I guess

so what has to be agreed to, for the lawyers ?

$1600/hour PLUS bonus, or does $1600/hour INCLUDE the bonus ?

or do the lawyers get to "bonus themselves" by adding on a few thousand hours here and thereand the bidding materials were withheld from potential bidders who, God Forbid, might have asked some questions

good job, Judge Lane

4714026
4714026

maybe the lawyer are really not happy at $1500/hour.    maybe they have to get $1600/hour.

4714026
4714026

usually in bankruptcy the problem is debtors sequestering assets, you know - putting them behind their back so the creditors can not find them

in this case - with the approval of Judge Lane, the lawyers sequestered the entire company - refusing to allow bidders other than US Airways to even see the offering materials

good trick - Judge Lane had to cooperate and sort of look the other way for something like that to work

why would competitive bidding be allowed for assets in bankruptcy anyway ?

you know - if the lawyers said they are happy with the backroom arrangements

who even said there has to be competitive bidding ?

The pilots got to loot the company, the mechanics (mostly in Texas) got really screwed, the lawyers were treated like kings, American commercial aviation seriously weakened ( why ?  because it would be helpful if America maintains the ability to take care of its planes, rather than taking the mechanics' salaries and giving them to the pilots as a bonus).

why should the Judge allow competitive bidding for the assets, if the lawyers are happy ?

what if the lawyers have "their own reasons" for being happy ?

oh, I'm sorry - I didn't mean to bring that up

4714026
4714026

probably the most disgusting bankruptcy in the history of American industry - good work, Judge Lane

1) competitive bidding for the assets prohibited  ( why would there be competitive bidding, that's not taught in law school ?)

2) "political" employee group (the pilots) allowed to severely damage and loot the company, mostly behind closed doors

3) mega legal fees ( yes, that is taught in law school)

4) America's competitive position in commercial aviation sacrificed and permanently impaired

good work, Judge Lane ---- the lawyers all said it was o.k., right ?   must all be fine.

ooops, you wrecked Ameican Airlines

ooops