Join The Discussion

 

26-story mixed-use tower planned at Taylor & Fifth in downtown Fort Worth

Jetta Operating Co., a 24-year-old privately held oil and gas company in Fort Worth, and a related entity plan a 26-story mixed-use tower downtown at Taylor and Fifth streets on a site once owned by the Star-Telegram.

read more >

UPDATE: Six candidates file for two Water Board seats

Six candidates have filed for the two open seats on the Tarrant Regional Water Board, setting up a battle that could potentially shift the balance of power on the board and the priorities of one of the largest water districts in Texas.

read more >

First restaurant tenant named for Waterside development

Zoes Kitchen will be the first restaurant tenant in Trademark Property's Whole Foods Market-anchored Waterside development in southwest Fort Worth,

read more >

Fort Worth breaks ground on $8.6 million South Main renovation

Fort Worth Near Southsiders and city officials broke ground Monday on the 18-month rebuild of South Main Street between Vickery Boulevard and West Magnolia Avenue.

read more >

Fort Worth Chamber names Small Business of the Year winners

A trampoline recreation business; an oilfield services company; a longtime aviation maintenance firm; a maker of electrical wiring harnesses. Those were the wide variety of businesses that received the 2015 Small Business of the Year Award from the Fort Worth Chamber of Commerce.

read more >

 

Judge questions giving OK to AMR bankruptcy plan

 

DAVID KOENIG,AP Airlines Writers
SCOTT MAYEROWITZ,AP Airlines Writers


NEW YORK (AP) — Lawyers for American Airlines pressed a judge Thursday to approve the company's plan to merge with US Airways and exit bankruptcy protection, but the judge delayed a ruling because of the federal government's lawsuit against the merger.

This was supposed to be American's victory lap — the day that a judge would remove the last hurdle for a merger that would make American the world's biggest airline.

Instead, it was a sideshow.

The U.S. Justice Department ruined American's plans — at least temporarily — on Tuesday by filing a lawsuit against the merger, which it said would hurt competition and increase prices for consumers by leaving four airlines controlling more than 80 percent of the U.S. air-travel market.

In court Thursday, lawyers for American parent AMR Corp. and its unsecured creditors said the Justice Department's case shouldn't stop the bankruptcy judge from approving AMR's reorganization plan.

But Judge Sean Lane wasn't so sure. He said he had "lingering doubts" about approving the turnaround plan and even considered postponing Thursday's hearing. Instead, he went ahead with the hearing but delayed a decision on AMR's plan until at least Aug. 29.

American and US Airways had hoped to close their merger by late September, but executives for both companies say that is unlikely now. They vowed to fight the Justice Department in court, but that could take months. If the government wins, AMR could be forced to dust off a plan to emerge from bankruptcy as a stand-alone company — another long process.

The merger was supposed to cap an era of consolidation that has helped the airline industry limit seats, raise prices and return to profitability. Although it would leave one fewer airline, American and US Airways argued that their merger would increase competition by creating a stronger rival to industry leaders United Airlines and Delta Air Lines.

Judge Lane also delayed a ruling on a $20 million severance award for AMR CEO Tom Horton, who would serve briefly as chairman before leaving the new company. The U.S. trustee's office, which oversees bankruptcy cases for the Justice Department, said the payment violates bankruptcy-law limits designed to prevent executives from getting big rewards not available to regular employees.

Susan Golden, a lawyer for the trustee, said the new company shouldn't bear the cost of paying Horton for work he did on AMR's reorganization. "He's being paid for work already performed," she said.

But Stephen Karotkin, a lawyer for AMR, said creditors and shareholders approved the merger knowing that it contained Horton's payment. He said the payment in cash and stock would ensure that Horton sticks around long enough to help smooth the process of combining two airlines.

___

Koenig reported from Dallas.

___

Koenig reported from Dallas.
 

< back

Email   email
hide
Catch
How 'bout them Cowboys?