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Irish
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Judge Lane held a hearing yesterday morning, August 15th, and there was a interesting development at 1125. From the notes:

"UPDATE, 11:25 a.m.: AA attorney Steve Karotkin said the plan does not seek to change retiree benefits. It does say that to the extent the company can’t get the relief it wants after it emerged from bankruptcy. If the company isn’t able post-bankruptcy to change those benefits, it’ll be treated like other vested obligations, he said.

Judge Lane agreed. The plan doesn’t change American Airlines retiree benefits, so that issue isn’t a reason to block confirmation of the plan.

There’s a separate adversarial proceeding underway. The last hearing was more than six months ago, and Judge Lane hasn’t ruled yet. American wants the right to make unilateral changes to retiree health and life insurance benefits, i.e., make retirees pay their own premiums."

Were you able to get through the legalese in that one? One the one hand the reorganization plan doesn't change retiree benefits. On the other hand is a separate adversarial proceeding (what the hell is that and who's promoting it) that does change retiree benefits."

All I can say is thank goodness my spouse and I are on Medicare and Blue Cross/Blue Shield Medigap.

UPDATE, 4:30 p.m.: Because of the U.S. Department of Justice lawsuit, we didn’t have a ruling Thursday on whether U.S. Bankruptcy Judge Sean Lane will confirm the plan of bankruptcy.

The judge closed the record on all matters related to the plan except the issue of whether the antitrust lawsuit filed Tuesday by the DOJ means that he shouldn’t confirm the plan.

He gave interested parties until Friday, Aug. 23, to file briefs on why he should or should not go forward on deciding if the plan of reorganization is feasible and should be confirmed.

Assuming that schedule doesn’t change, the matter will probably be debated at the next scheduled hearing, on Aug. 29. But that could change if American and the unsecured creditors committee determine that eight days (Aug. 15-23) aren’t enough to prepare their arguments.

And the court hearing was adjourned."

Posts: 1634 | From: Hampton, NH  |  IP: Logged
Dick Nicklas
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Member # 934

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AMR, US Air jump on reports of merger settlement
11:27 AM ET, 11/12/2013 - MarketWatch Pulse News Bullet
SAN FRANCISCO (MarketWatch) -- Shares of AMR Corp. and US Airways Group Inc. jumped Tuesday on reports the two airlines have settled a Department of Justice anti-trust lawsuit that has been blocking their proposed $17.2 billion merger. US Airways shares were halted pending news. The stock was last traded at $24.07, up 3.4%. AMR Corp., parent of American Airlines, was last up 28% at $12.20 in over-the-counter trade. Bloomberg, citing a person familiar with the deal, said the Department of Justice would be making an announcement later today.

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