DOJ Suit Throws American Airlines Bankruptcy Into Chaos

Law360, New York (August 13, 2013, 7:40 PM EDT) -- Tuesday's antitrust action to block the birth of the world's largest airline came 48 hours before US Airways Group Inc. was scheduled to formally rescue American Airlines Inc. from bankruptcy, but the new competition lawsuit jeopardizes both Thursday's confirmation hearing and the entire reorganization plan.

Already authorized by both the European Commission and the shareholders, the keystone to the $11 billion merger was expected to be approved with little ado at a confirmation hearing Thursday morning in New York. Instead, a coalition of federal regulators and state...
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