| NEW YORK
NEW YORK Nov 30 American Airlines'
bankrupt parent has asked a judge to extend by six weeks,
through March 11, the period in which it has the exclusive right
to propose a plan to exit bankruptcy.
The request, made jointly with its creditors' committee, was
filed on Friday in U.S. Bankruptcy Court in Manhattan. The
current exclusive window is set to end on Jan. 28.
AMR Corp filed for bankruptcy a year ago in hopes of
reducing its labor costs and returning to profitability.
Its smaller competitor, US Airways Group, is making
a push to acquire it out of bankruptcy. AMR said earlier this
year it would prefer to exit as a standalone company, but is
discussing merger options, including with US Airways.
Friday's filing is a sign that discussions with creditors on
how to bring AMR out of bankruptcy are progressing
cooperatively, if a bit slower than initially expected.
"American and the [creditors' committee] believe that the
proposed extensions will facilitate the expedition of the
chapter 11 cases and benefit all parties in interest," the
The exclusivity period bars creditors and other parties from
proposing their own plans for how AMR should exit bankruptcy.
That effectively blocks US Airways from making a hostile
bid, as any merger plan unveiled during exclusivity would have
to be proposed by AMR itself.
A hearing on the extension request is set for Dec. 19.
The case is In re AMR Corp et al, U.S. Bankruptcy Court,
Southern District of New York, No. 11-15463.