AMR Corp. (AAMRQ:US)’s American Airlines asked a judge to extend until the end of the year the carrier’s exclusive right to propose a plan to restructure and exit bankruptcy protection.
American needs more time to negotiate terms of a bankruptcy plan as it works to cut labor costs and consider “strategic alternatives,” according to a filing today in U.S. Bankruptcy Court in Manhattan.
The extension is “warranted and necessary to afford American a meaningful opportunity to pursue the Chapter 11 reorganization process and build a consensus among economic stakeholders,” the company and the committee representing unsecured creditors said in the filing.
American’s exclusive right to file a bankruptcy plan expires Sept. 28. The Fort Worth, Texas-based carrier and the committee are asking for an extension to Dec. 28, according to the filing.
An extension approved by U.S. Bankruptcy Judge Sean Lane would prevent rival plans from being filed during the period.
The case is In re AMR Corp., 11-15463, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
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