Tags: USAirways | bankruptcy | merger | airlines

Judge Says Has Doubts About AMR Bankruptcy Plan

Thursday, 15 Aug 2013 11:01 AM

The judge overseeing AMR Corp.'s bankruptcy asked for additional briefings from AMR and other parties on whether AMR's plan to exit bankruptcy could be confirmed in light of an antitrust challenge to its planned merger with US Airways Group Inc.

At a hearing in U.S. Bankruptcy Court in New York, Judge Sean Lane said he had "lingering doubts" as to whether it was appropriate to confirm the plan, which is based on the proposed $11 billion merger with US Airways.

The judge's comments and call for additional briefs suggest he will not sign off on the plan at Thursday's hearing. A lawyer for AMR said in court that Lane could still approve the plan, because it would not actually go into effect unless and until the antitrust matter was resolved.

The Justice Department filed an antitrust lawsuit on Tuesday seeking to block the proposed merger, saying it would reduce competition and push up fares.

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