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Judge denies $20M severance deal for AMR CEO

A federal bankruptcy judge has denied a proposed $20 million severance payment for the CEO of American Airlines as part of the company

MGN Online

DALLAS (AP) - A federal bankruptcy judge has denied a proposed $20 million severance payment for the CEO of American Airlines as part of the company's merger with US Airways.

The judge ruled Thursday that the proposed payment to CEO Tom Horton exceeded limits that Congress set for bankruptcy cases in 2005.

The U.S. trustee's office, part of the Department of Justice, had objected to Horton's compensation. Judge Sean Lane declined to approve the payment during a hearing on March 28, but he didn't issue a ruling until Thursday.

At that hearing last month, however, Lane approved the plan for American Airlines parent AMR Corp. to merge with US Airways Group Inc. in a deal that would create the world's largest airline. The merger is being reviewed by U.S. antitrust regulators.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)


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