American Airlines bankruptcy trustee challenges outgoing CEO's severance
Skift Take
Horton's generous package was one of the biggest deal points during negotiations and the judge's move, if upheld, could put parts of the deal in jeopardy.
The U.S. trustee in AMR Corp.'s Chapter 11 bankruptcy case has objected to American Airlines CEO Tom Horton's $19.8 million severance payment, arguing that the company hasn't explained why such a large sum is permissible under federal bankruptcy rules.
Horton's compensation is addressed as part of the company's merger agreement with US Airways, which calls for Horton to become chairman of the combined company until its first shareholders meeting, expected in mid-2014. US Airways CEO Doug Parker will be chief executive of the combined carrier.
The U.S. trustee in such cases supervises the debtor's administration. That incl
