A judge agreed on Wednesday to merge AMR Corp plan with US Airways Group, a step toward creating the biggest airline in the world.
AMR, parent of American Airlines with bankruptcy since November, 2011, must construct a formal restructuring plan involving the merger, affecting Court and creditor approval, before the airline emerge from bankruptcy.
American Airlines announced plan a business associate with US Airways last month, needed also regulatory approval.
In a crowded Manhattan courtroom refused US Bankruptcy Judge Sean Lane on Wednesday to approve a planned CEO outgoing $19.9 million severance package for Tom Horton, AMR.
Lane said he was unsure whether the compensation must consent at all, or whether the thing suitable for inclusion in AMR is the formal restructuring plan better.
This plan, which all debtors in bankruptcy must suggest how creditors will be paid back, and requires the consent of the holders is interpreted.
The fate of the Terminal is unclear. The version of the merger agreement, that consent of the judge deserves may be modified to remove it.
Jack Butler, a lawyer for creditors of AMR, said it was too early to say how the parties will deal with the compensation question.
"Companies were willing to amend the Merger Treaty, in every respect, and I expect that there will be a change," Butler said after the hearing.
AMR bankruptcy citing unsustainable labor costs after years of futile attempts to cost savings from unionized employees negotiate. It was bankruptcy, go through the last big U.S. carrier, after its competitors underwent the same operation in the last decade been.
Wednesday was a key moment in AMR 16-month odyssey through reorganization under Chapter 11 of the bankruptcy code. Stephen Karotkin, a lawyer for AMR, known as Wednesday is a "tipping point," hear the moves AMR a step closer to bankruptcy exit.
The airline began its bankruptcy proceedings flat against a merger is still in bankruptcy, but eventually the pressure from its creditors Committee, represented by Butler and Jay Goffman, both lawyers at Skadden Arps slate Meagher & Flom drew.
US Airways CEO Doug Parker AMR wooed aggressively, taking advantage of the AMR work relations problems at the trade unions appeal.
US Airways structured have gone a provisional with the unions talks between the two companies management team last April, before formal merger in full swing.
The creditors finally is AMR, to adopt a protocol for assessing a merger, and played an important role in the analysis of the net savings and benefits from a merger.
AMR of the previous shareholders will get a 3.5 percent stake in the new company expected to, which would make it one, earning the few large insolvencies in the shareholders some recovery.
Advising the creditors Skadden counsel played a central role in the negotiations on the new management structure, including information about Horton severance.
Parker is as CEO of the combined carrier, while Horton, AMR CEO was logged in as Chairman of the airline, there will be personal bankruptcy by the first general meeting serve shareholders. After that, Parker takes the role of the Chairman.
The merger is expected to completed in the third quarter.
The case is in AMR Corp of terms of et al, U.S. bankruptcy court, Southern District of New York, no. 11 15463.
Copyright 2013 Thomson Reuters.
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