Judge Hints At Helping American Airlines Out Of Bankruptcy | WAMU 88.5 - American University Radio

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Judge Hints At Helping American Airlines Out Of Bankruptcy

A U.S. bankruptcy judge on Thursday indicated that he's leaning in favor of a allowing American Airlines to emerge from bankruptcy, clearing a major obstacle to the carrier's planned merger with US Airways.

Judge Sean H. Lane said he is "finding the arguments in favor of confirmation fairly persuasive" to allow American, which filed for Chapter 11 in November 2011, to emerge from bankruptcy.

Lane reportedly could sign off on a restructuring plan for AMR Corp., American's parent, on Sept. 12, according to The Associated Press.

AP says:

"Such a decision would only leave one obstacle — although a big one — to American's proposed merger with US Airways. That would be an antitrust lawsuit filed by the government earlier this month."

We reported about that anti-trust lawsuit, filed by the Department of Justice, earlier this month.

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