American reorganisation plan likely to be confirmed

Washington DC
Source:
This story is sourced from Pro
See more Pro news »

The US bankruptcy court judge in American Airlines Chapter 11 reorganisation suggests that he will approve the carrier's reorganisation plan today, including a contested merger with US Airways.

"I'm finding the arguments in favour of confirmation fairly persuasive," says judge Sean Lane during a hearing in New York today. He adds that numerous other reorganisation plans have been confirmed while still subject to regulatory approval.

Fort Worth, Texas-based American says: "We are pleased the judge found our arguments in favour of confirmation persuasive."

The carrier adds that it is focused on securing a 12 November trial date in the US Department of Justice's (DOJ) challenge to its proposed merger. The agency is seeking a 3 March 2014 date.

American pushed for confirmation of the plan, which was overwhelmingly approved by its creditors and stakeholders, in a brief to the court on 23 August. It said that a delay would create "unwarranted element of uncertainty" for the airline and that the plan would be withdrawn if the DOJ challenge succeeds.

The federal agency took "no position" on confirmation of the plan, in a separate filing.

Lane is expected to issue a ruling either at or before a hearing scheduled for 12 September.