American Airlines asks for 3-week extension to file its restructuring plan
American Airlines plane on the tarmac in Colorado. Sam Beebe / Flickr
AMR Corp.’s request to extend its restructuring-plan to April 1 makes it appear as if a merger with US Airways is being seriously considered, and would be no April Fool’s joke.
American wants to extend from March 11 to April 1 its exclusive right to submit a proposal to pay creditors and emerge from court protection, it said today in a filing in U.S. Bankruptcy Court in Manhattan.
The additional time, if approved by U.S. Bankruptcy Judge Sean Lane, would be the fifth such extension since Fort Worth, Texas-based American filed for bankruptcy in November 2011. The extension would prevent rival plans from being filed in court.
The airline said the extension would allow it to review with creditors “all strategic alternatives.” Chief Executive Office Tom Horton said this month that the airline expected to reach a decision on whether to merge with US Airways in a matter of weeks.
The case is in re AMR Corp., 11-15463, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
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