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Residential land at Chisholm Trail Ranch purchased

Stratford Land, Legacy Capital Co. and the Walton Group of Cos. have snapped up 268 acres of residential land at Chisholm Trail Ranch in Fort Worth.

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Fort Worth to consider adopting 15-year Cavile Place redevelopment plan

The 300-unit Cavile Place housing project in Southeast Fort Worth would be razed and replaced in phases, with a significant number of the units redistributed into the neighborhood.

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Fort Worth payment processor acquired by pension plan group

Fort Worth-based First American Payment Systems has been acquired by an investor group led by the Ontario Teachers’ Pension Plan (Teachers’), with participation of members of the First American management team.

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Texas adds 19,100 nonfarm jobs in June; Fort Worth-Arlington jobless rate 5.3 percent

Seven of Texas' 11 major industry segments added jobs in June, the Texas Workforce Commission reported.

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Fort Worth council members approve Cavile Place redevelopment plan

The vote kicks off what officials say will be a 10-15-year implementation.

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Trustee opposes $20M payout to American Air CEO

 

JOSHUA FREED,AP Airlines Writer


The Justice Department is objecting to a proposed $20 million severance payment for American Airlines CEO Tom Horton, saying it's bigger than allowed by bankruptcy law.

Horton became CEO when American filed for Chapter 11 protection in November 2011. The proposed merger of US Airways Group Inc. and American calls for Horton to lose that job and become chairman of the combined company. American has proposed giving him severance pay of almost $20 million and lifetime flight benefits.

The objection filed Friday by the U.S. trustee's office says bankruptcy law caps such payments, even if they are agreed to in bankruptcy court but not made until the company exits bankruptcy protection. Bankruptcy law limits severance payments to executives and aims to make sure companies can repay as much of their debt as possible.

The objection also says previous company filings showed that Horton would get a maximum of $6.4 million if he had left at the end of last year, and raises the question of why he should get so much more money now. American has said in filings that the money for Horton is in recognition of his efforts during the airline's restructuring and his role in overseeing the merger with US Airways.

The trustee's objection also says American should be required to explain how its board determined that $20 million was the right amount for Horton, and to say whether independent directors approved of the payment.

The trustee's office is part of the Justice Department. Its job is to review bankruptcy cases to make sure bankruptcy laws are being enforced.

A written statement from American said it does not "expect any delay in the approval of the Disclosure Statement or voting on the Plan of Reorganization," which the company said is supported by the committee of unsecured creditors.

The case is in federal bankruptcy court in New York. Judge Sean Lane had previously rejected the same payment for Horton, but he left the door open for American to propose the payment in its reorganization plan, which it has done.

The trustee's objection is set to be heard in bankruptcy court on June 4.
 

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