Judge Says AMR Can't Pay $20M CEO Bonus

Law360, New York (April 12, 2013, 3:17 PM EDT) -- The New York bankruptcy judge that recently approved the AMR Corp. and US Airways Group Inc. merger and denied AMR’s CEO a $20 million severance payment said Thursday that the airline can’t get away with the bonus simply because it would be paid by the newly formed entity.

In a 20-page opinion outlining his reasons for denying the $19.9 million severance package to CEO Tom Horton, U.S. Bankruptcy Judge Sean H. Lane said Section 503(c) of the U.S. Bankruptcy Code was drafted for the express purpose...
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