Merger Approved by Judge, Horton's Parachute Rejected

[eolesen]

I know, it has nothing to do with AMFA, Delta, or the new nonrev policies, but I found this interesting....

http://www.bloomberg.com/news/2013-03-27/amr-s-merger-with-us-airways-approved-by-judge-in-n-y-.html

AMR’s Merger With US Airways Approved by Judge in N.Y.
By David McLaughlin - Mar 27, 2013 5:24 PM MT

American Airlines parent AMR Corp. (AAMRQ) won court approval for its merger with US Airways Group Inc. (LCC) as a judge rejected a $20 million severance deal for Chief Executive Officer Tom Horton.

U.S. Bankruptcy Judge Sean Lane in Manhattan approved the merger at a hearing today while denying approval for Horton’s severance following opposition from the U.S. government, which called the pay a “golden parachute.”

“The merger is a terrific result,” said Lane, who will issue a written decision explaining his reasoning. Approving Horton’s severance now “is just not appropriate.”

Approval of the agreement moves Fort Worth, Texas-based American a step closer to finishing its reorganization and exiting bankruptcy protection. The carrier filed for bankruptcy in November 2011 and announced its merger with US Airways in February.

The tie-up with US Airways will create the world’s largest carrier and will be completed through a bankruptcy reorganization plan for American. That plan requires creditor support and separate approval from Lane. The court hearing to approve the bankruptcy plan should occur in about six months, said Stephen Karotkin, an attorney for American.

Don't fret -- Horton will still get his severance after the deal closes. But it would appear that his leaving isn't one of the conditions approved by the court. Maybe he'll stick around, instead?

 

[Rogallo]

Who cares!!

What are the new non-rev policies? Can I travel on US now? Please elaborate.

 

[Ed Norton]

Just more mischief by corporate devils. Where's my pre funding match money?

 

[1AA]

Just more mischief by corporate devils. Where's my pre funding match money?

Ask Horton. He may be getting our money in place of his now rejected severance package.

 

[AANOTOK]

E, your intelligence and knowledge of the airline industry is only surpassed by your verbal smirk. In other words, the pleasure you you get from being such a smarta**, especially at labors expense. But hey, if it gets you off, more power to you. We all love getting off in one way or another.

 

[NewHampshire Black Bears]

Who cares!!

What are the new non-rev policies? Can I travel on US now? Please elaborate.

YES Rogallo,....since 3/1/13..AA can ride US, and visa-versa (I'm pretty sure) !

 

[Vortex]

YES Rogallo,....since 3/1/13..AA can ride US, and visa-versa (I'm pretty sure) !

It's more like an enhanced Zed fare. You pay by the leg. price starts at $5 and goes to $50 for International flights.

 

[MCI transplant]

So how do I list on this "enhanced Zed fare"? And is there anyway I can check US flight load facters, and schedules?

 

[Hackman]

All for show by the judge, management always gets paid their millions and ill gotten bonuses....regardless of poor financial performance, incompetence, and bankruptcy.

Nothing to see here....

 

[IORFA]

So how do I list on this "enhanced Zed fare"? And is there anyway I can check US flight load facters, and schedules?

You list the same as you did before. They are working on a way to let us see loads. Stay tuned for that. They are just way cheaper at this point.

 

[MCI transplant]

You list the same as you did before. They are working on a way to let us see loads. Stay tuned for that. They are just way cheaper at this point.

Thank you sir! It'll be interesting to see what they come up with!

 

[spectator]

looks like Mr. Horton won't be getting the severance payment.

http://finance.yahoo.com/news/judge-denies-amr-ceo-20-121734395.html

 

[MCI transplant]

More on Horton's "Bad Day!" http://news.yahoo.com/judge-denies-20m-severance-deal-102023597.html

 

[jimntx]

I loved this bit from the article...

"Lane also said AMR's request that he defer to its "business judgment" in authorizing the payout was "exactly what Congress sought to prevent" in adopting limits on severance awards by companies in bankruptcy." (I particularly like that the writer put business judgment in quotes. I think I sense a note of sarcasm.)

Hell, it was their "business judgment" that put us in bankruptcy. So, why would the bankruptcy judge defer to their "business judgment" whether Congress wanted to prevent it or not?

 

[eolesen]

looks like Mr. Horton won't be getting the severance payment.

http://finance.yahoo.com/news/judge-denies-amr-ceo-20-121734395.html

Wrong.

And it looks like you forgot to log out as Spectator, WT....

Lane wrote that if the new company wants to make a payment to Horton, it could do so without getting the court's approval. The new company won't be bound by bankruptcy laws "and instead will answer only to its shareholders," he wrote.