American Airlines parent AMR Corp. continues to defend its merger with US Airways Group Inc., saying that bonuses and raises it plans to pay out do not need to comply with the Bankruptcy Code, Dow Jones Daily Bankruptcy Review reported today. AMR said in a Friday court filing that U.S. Trustee Tracy Hope Davis is wrong in her assertion that proposed wage increases and a $19.9 million severance payment to AMR Chief Executive Tom Horton must comply with bankruptcy rules. The payments, AMR said, will be made by AMR and U.S. Airways after their merger is consummated, even though Davis says that the payments must comply with the Bankruptcy Code since AMR is in bankruptcy.
