AMR Corp., the parent company of American Airlines, filed formal plans to exit bankruptcy yesterday, bringing its proposed $11 billion merger with US Airways Group closer to reality, Reuters reported yesterday. The reorganization plan, which details some executive compensation and outlines measures for creditors and shareholders, is a necessary step before the two companies can come together to create the world's largest airline. The plan requires both court and creditor approval. Under the plan, AMR's outgoing chief executive, Tom Horton, would receive a $19.9 million severance package. Bankruptcy Judge Sean Lane declined to approve the same severance proposal earlier this month, ruling that it was not permitted under federal bankruptcy law, but suggested it be included in AMR's reorganization plan, making it subject to creditor approval. Secured creditors would be paid in full, while unsecured creditors would receive shares of preferred stock.
