The Deal: AMR Confirmation Moves to Sept. 12
Counsel to the official committee of unsecured creditors, John Butler Jr. of Skadden, Arps, Slate, Meagher & Flom LLP, said in court that the plan is "incredibly important and instructive. Our stakeholders knew exactly what they were voting on when they voted for this plan."
The DoJ looks to begin the antitrust trial on March 3, while AMR wants Nov. 12. Government attorneys noted that AMR is capable of emerging from Chapter 11 in solid financial shape without being acquired.
"American's restructuring efforts have been extraordinarily successful and have positioned the company to compete as a strong and vibrant standalone firm," the DOJ said in the filing.
AMR recently announced a $357 million net profit for the second quarter, the "best second-quarter result in company history." The net profit was a $262 million improvement over the same period last year.AMR was the only major U.S. airline that had not sought Chapter 11 protection until Nov. 29, 2011, when it filed its petition. AMR blamed its bankruptcy on weak financial performance since 2009, which has left the Fort Worth-based company behind its major rivals, many of which restructured and emerged from bankruptcy before 2009. AMR was hurt further by an uncertain economic outlook, volatile fuel prices, an uncompetitive cost structure and a diminishing financial condition, which had been the subject of industry analyst reports and the cause of speculation about a possible bankruptcy filing. Thomas A. Roberts, Glenn D. West and Alfredo Pérez of Weil Gotshal are also debtor counsel. Jones Day's Joe Sims and J. Bruce McDonald, Paul Hastings LLP's MJ Moltenbrey, Debevoise & Plimpton LLP and K&L Gates LLP are AMR's legal advisers. Rothschild's Christopher Lawrence, Homer Parkhill, Yusik Choi and Matt Chou are the airline's financial advisers. Sims is representing AMR in the DOJ lawsuit. A Barclays plc team including Josh Connor, Ben Metzger, Kristin Healy and Larry Hamdan joined with Jim Millstein of Millstein & Co. LLC to serve as financial advisers to US Airways. Latham & Watkins LLP's Peter F. Kerman, O'Melveny & Myers LLP, Cadwalader, Wickersham & Taft LLP and Dechert LLP's Paul T. Denis, Gorav Jindal and Rani Habash provide legal counsel to US Air.
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