A plan by American Airlines' parent to exit bankruptcy and merge with US Airways Group is coming under fire from the U.S. Department of Justice over nearly $20 million in severance pay earmarked for outgoing CEO Tom Horton, Reuters reported on Friday. U.S. Trustee Tracy Hope Davis said in court papers on Friday that the severance deal for AMR Corp's chief executive violates bankruptcy law. The initial merger agreement called for $19.9 million in severance payments for Horton, but when Judge Sean Lane approved the merger at a hearing in March, he refused to green-light the severance package, saying that it was a matter that should be left for AMR's chapter 11 exit plan. Davis at the time had opposed the severance on grounds similar to those she cited on Friday.
