American Airlines' $1.5B Financing, Debt Repayment OK'd
By Sindhu Sundar
Law360, New York (January 17, 2013, 12:00 AM ET) -- A New York bankruptcy judge on Thursday greenlighted bankrupt American Airlines Inc. parent AMR Corp.'s bid for $1.5 billion in financing to repay debts from certain prepetition financing transactions, over the objections of U.S. Bank Trust NA, a loan trustee for the deals.
U.S. Bankruptcy Judge Sean Lane approved AMR's bid despite U.S. Bank's argument that the airline had to pay an additional premium called a “make-whole amount.”
Judge Lane said Thursday that AMR did not have to pay that premium because its bankruptcy filing sped up...