AMR Corp., the American Airlines parent restructuring in bankruptcy, won court approval for $1.5 billion in aircraft financing, defeating bondholder opposition to a plan to repay debt, Bloomberg News reported today. Bankruptcy Judge Sean Lane approved American’s request for the financing in a decision filed yesterday, overruling an objection from a noteholder trustee that said the company owes a make-whole amount. AMR, which filed for bankruptcy in 2011, sought court approval in October for the financing to take advantage of lower interest rates, saying it may save more than $200 million in interest expense. The company said it planned to redeem about $1.3 billion in debt backed by aircraft. The proposal was opposed by trustee U.S. Bancorp, which sued the Fort Worth, Texas-based airline in bankruptcy court. It said that AMR was required to pay the make-whole amount.
