American Airlines parent AMR Corp. won more time to develop its plan to restructure and exit bankruptcy as it works to consider possible mergers.
American’s request for an extension of a deadline for filing the plan was approved by U.S. Bankruptcy Judge Sean Lane at a court hearing today in Manhattan. The ruling extends American’s exclusive right to file a proposal to Dec. 28 and blocks competing plans.
American obtained more time as Chief Executive Officer Tom Horton said last week the company will consider “a range of strategic options,” including potential mergers, and has “multiple options” available.
US Airways Group Inc. (LCC:US) wants to combine with American, based in Fort Worth, Texas, and supported American’s request for the extension. US Airways is a creditor of AMR and bought debt so it can have standing to participate in the bankruptcy case.
Christopher Harris, an attorney for Tempe, Arizona-based US Airways, attempted to speak at today’s hearing. Lane said he didn’t need to hear from the airline and didn’t want to get “sidetracked.”
In allowing more time to file the plan, the judge said American, which filed for bankruptcy in November, has made progress in its restructuring and has “easily met” the requirements for an extension. The request was supported by the committee representing unsecured creditors.
AMR and the creditors’ committee said in court papers they will work together to consider strategic alternatives for the airline.
The case is In re AMR Corp. (AAMRQ:US), 11-15463, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
To contact the reporter on this story: David McLaughlin in New York at firstname.lastname@example.org
To contact the editor responsible for this story: John Pickering at email@example.com