US Trustee Balks At AMR's $20M CEO Payment

Law360, Los Angeles (August 02, 2013, 8:57 PM ET) -- The U.S. trustee objected to AMR Corp.’s second amended joint Chapter 11 plan Friday, saying the plan impermissibly provides a $20 million severance payment for the company’s CEO, reimbursement of legal expenses of indenture trustees and an overly broad exculpation provision.

U.S. Trustee Tracy Hope Davis’ objection came just one day after AMR announced that its creditors voted “overwhelmingly” in favor of its reorganization plan, moving the company one step closer to exiting bankruptcy and effectuating its $11 billion merger with US Airways Group Inc. Following Monday’s...
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