AMR CEO's $20M Severance Pay Draws US Trustee Challenge

Law360, New York (March 18, 2013, 2:05 PM EDT) -- The U.S. on Friday challenged the nearly $20 million severance package the CEO of bankrupt AMR Corp. would receive when American Airlines Inc. merges with US Airways Group Inc., a potential obstacle to a deal that would create the world’s largest carrier.

U.S. Trustee Tracy Davis challenged the proposed $11 billion merger in a court filing, saying the severance package and other payment changes for regular employees do not fall in line with Section 503(c) of the U.S. Bankruptcy Code. The trustee rejected the airline’s contention...
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