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APFA Bankruptcy Update – Judge Lane Says He’ll Render Decision on AA Bankruptcy By Wednesday, Latest
November 26, 2013
Yesterday, a Bankruptcy Court hearing was held on three motions – two brought by American Airlines and one filed by individual plaintiffs, who contend that the merger violates the anti-trust law (“Clayton Act Plaintiffs”). In American’s motions, the Company is asking the Court (1) to approve the Settlement Agreement between American, US Airways, the U.S. Department of Justice and the participating states’ attorneys general, and (2) to consummate the merger.
In the Clayton Act Plaintiffs’ motion, they are seeking a temporary restraining order (“TRO”) that would stop the merger from going forward. The hearing on the three motions took approximately three hours during which time Judge Lane closely questioned counsel for the Clayton Act Plaintiffs (aka “Alioto”). He focused on whether the Plaintiffs had presented sufficient evidence to warrant a remedy as extraordinary as a TRO. In contrast, the Court had no questions of American’s attorney regarding the Company’s two motions. If the motions are granted, an Effective Date for the consummation of the merger and American’s exit from bankruptcy will be set and could be as early as December 9.
At the end of the hearing, Judge Lane announced that he would take the three motions under advisement issue a decision no later than Wednesday.
AmericanAirlines + US Airways
APFA National Communications Coordinator