AMR Keep Reins on Bankruptcy till December: Allowed by Court ...

AMR Corporation has won court approval to extend period to prepare an exclusive plan to prevent bankruptcy on Thursday. It happens at a hearing in Manhattan in a U.S bankruptcy court. The request was granted by U.S. Judge Sean Lane and supported by the AMR?s AAMRQ PK creditors committee. However, the previous period for the same was September that extends up to December after this court decision.

AMR declared bankrupt in November. Unreasonable labor cost structure was mentioned as reason behind this. Due to the extension period, creditors cannot put their own proposals for AMR for clearing its debts. AMR receive enough time to prepare new repayment plan. US airways group merge with AMR after efforts and now this joint venture is looking forward for some strategic options for its emergence from bankruptcy.

AMR is looking forward for restructuring debt payments and merger partner of AMR will be also considered in this process. Tom Horton chief executive of AMR met with Doug Parker chief executive of US Airways on early Thursday. He has assured his contribution in AMR?s strategic review process. It said that it will be fact based and objective.

During meeting, Horton said that company is looking for preparing a strategic plan to cover much of the creditor?s amount and the time to start the process has arrived. This meeting was not public so spokesman requested not to open his name. There are several efficient plans available for financial strategy of the company and Company is looking for best option available.

Majority of Industry analysts suggest US Airways for merger but AMR is also looking for other investors and carriers for potential tie up. US airways have acquired some part of AMR debts and it makes payments to the AMR creditors and that heard by court in hearing. US airways have told that AMR?s exclusivity period is a good decision and he is in support of it.

However, court has denied talking with US Airways lawyer on Thursday hearing. Judge has told that like US Airways, there are several other creditors in this case and court doesn?t want to motivate the case in other direction.

Source: http://articlereference.net/finance/amr-keep-reins-on-bankruptcy-till-december-allowed-by-court.html

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