US Trustee, Banks Slam AMR Bankruptcy Exit Plan

Law360, New York (May 24, 2013, 6:28 PM ET) -- The U.S. trustee in AMR Corp.’s bankruptcy Friday objected to the airliner’s disclosure statement and proposed reorganization plan, claiming the plan contained an improper $20 million severance payment to outgoing CEO Tom Horton and impermissibly covered certain creditors’ legal fees.

Citibank and U.S. Bank also filed objections to the disclosure statement Friday, saying AMR had not said how it will handle a contract for a frequent flier credit card program with Citibank or given enough information about the trustee’s appeal of a plan to repay a...
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