Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Bankruptcy Judge Hesitant to Approve AMR's Bankruptcy Plan
Author: Joel R. Glucksman
Date: August 27, 2013
Key Contacts
Back
The Justice Department’s unexpected antitrust lawsuit that is designed to halt the merger of US Airways and American Airlines may interfere with the final confirmation of AMR’s bankruptcy plan, a judge said in Thursday’s hearing.
U.S. Bankruptcy Judge Sean Lane, who before this week was expected to give the final approval of AMR’s bankruptcy plan, said that he has “lingering doubts” about approving the company’s proposal while the merger was being challenged. Instead, he requested that attorneys for the airlines submit written briefs detailing the impact of the antitrust lawsuit before he proceeded with the plan-confirmation hearing. The request may further delay AMR’s plan to formally exit bankruptcy protection, a key condition that must be met before any merger could take place. Attorneys for the airline said that the lawsuit should not stop the court from approving AMR’s bankruptcy plan, The Associated Press reports.
Earlier, representatives for the Justice Department argued that AMR is “fully capable of emerging from bankruptcy proceedings on its own with a competitive cost structure, profitable existing business, and plans for growth,” according to Bloomberg. Further, the government agency said that the merger would hinder competition in the industry and prompt the airline to raise prices and fees for consumers. Both airlines have argued that the opposite is true, and that greater resources would allow it to offer competitive pricing to customers.
Should the merger deal be blocked, analysts say that the company and its creditors will be required to establish a new plan that suits all parties, a process that could drag out into 2014. However, AMR noted that the merger is in the best interest of the company, its creditors, shareholders, and customers. Immediately following the announcement of the Justice Department’s lawsuit, representatives for both airlines said they plan to fight the litigation to move forward with their plans.
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
The SEC’s Latest Guidance on Applying Federal Securities Laws to Tokenized Securities
On January 28, 2026, staff of the U.S. Securities and Exchange Commission’s Divisions of Corporation Finance, Investment Management, and Trading and Markets issued a joint statement clarifying how existing federal securities laws apply to tokenized securities. The SEC’s “Statement on Tokenized Securities” does not establish new law, but it does provide greater clarity on the […]
Author: Dan Brecher
Common Legal Mistakes NYC and New Jersey Business Owners Make
Operating a business in the New Jersey and New York City metropolitan region offers incredible opportunities, but it also requires navigating a dense and highly regulated legal environment. From entity formation to regulatory compliance, seemingly minor legal oversights can expose business owners to significant risk. In our work with businesses throughout the region, our attorneys […]
Author: Dan Brecher
What Founders Can Learn From Start-up Suits
High-profile founder litigation is more than just a media spectacle. For startup founders, these cases underscore the legal and structural risks that can arise when rapid growth outpaces formal oversight. While launching a new company can be both an exciting and deeply rewarding endeavor, founders must be mindful that it also comes with significant risks. […]
Author: Dan Brecher
Corporate Governance Reviews: A Practical Guide for New Jersey Companies
Every New Jersey company should periodically evaluate its governance framework. Strong corporate governance protects directors and officers, builds investor confidence, reduces litigation exposure, and positions a company for sustainable growth. The first quarter of the year is a great time to evaluate your corporate governance practices and perform any routine maintenance needed to keep that […]
Author: Ken Hollenbeck
What to Do After Being Served with a Lawsuit: Steps to Protect Your Legal Rights
Being served with a lawsuit is one of the most stressful legal events a business or individual can face. Whether the claim involves a contract dispute, an employment matter, an intellectual property issue, or another legal challenge, the actions you take in the first few days can significantly shape the outcome of your case. Acting […]
Author: Robert E. Levy
Will 2026 Be a Banner Year for SPACs? Understanding the Risks and Opportunities
Special Purpose Acquisition Companies (SPACs) continue to gain momentum as we move through 2026. After enduring a significant contraction following the 2021 boom and the regulatory scrutiny that followed, SPAC activity rebounded sharply in 2025 and now carries forward into 2026 with real momentum. The SPAC resurgence reflects broader improvements in both market conditions and the […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.