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
IP Infringement: What Steps Can You Take If You're Affected?
IP infringement occurs when someone uses your intellectual property without your permission or beyond the scope of the permission you granted. Common examples of IP infringement include copying a product’s patented features or using a trademarked logo in a way that is likely to confuse consumers about the source or affiliation of goods or services. […]
Author: Michael Mietlicki
Public Allegations, Unfinished Investigation: What New Jersey Businesses Should Do Next
When facing public allegations of wrongdoing, companies should not let the speed of the public conversation dictate the speed of an investigation. An investigation designed to confirm a preferred narrative rather than establish the facts can create serious problems later, particularly if litigation, regulatory scrutiny, or employment claims follow. Key Takeaways When public allegations surface […]
Author: Sean M. Pena
BESS Interconnection: Managing Grid, Cost, and Schedule Risk
For battery energy storage system (BESS) developers, securing equipment and site control is only part of the development equation. A project must also connect to the electric grid, and increasingly, BESS interconnection is one of the biggest sources of schedule, cost, and contractual risk. Key Takeaways This article is Part 3 of our Battery Storage […]
Author: Nicholas Wall
Navigating Director and Officer Liability in Times of Financial Distress
Director and officer liability increases sharply when a company is in financial distress. Decisions that would draw little attention in a healthy business can later be challenged by creditors, shareholders, bankruptcy trustees, and regulators as breaches of fiduciary duty, fraudulent transfers, or oversight failures. Understanding where that exposure comes from, and how to manage it, […]
Author: Michael Mietlicki
Before You Buy: Managing Real Estate and Permitting Risk for BESS Projects in New York and New Jersey
For developers pursuing battery energy storage system (BESS) projects, finding the right property is only the beginning. BESS site selection is as much a legal and transactional exercise as a real estate decision, with risk analysis central to the project’s ultimate success. Key Takeaways The core questions for BESS site selection in New York and […]
Author: Nicholas Wall
What Business Owners Get Wrong Before Meeting a Litigation Attorney
What should you expect when meeting a litigation attorney about a business dispute? You should expect to describe the dispute in your own words, hand over the most important documents, flag any deadlines or immediate threats, and leave with a clearer picture of the problem, what information is still needed, and the likely next steps. […]
Author: Michael Mietlicki
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.