AMR Corp. is set to move ahead with a Thursday court hearing on a bankruptcy-exit plan based on its merger with U.S. Airways Group Inc., but the Justice Department’s antitrust lawsuit to block the tie-up adds great uncertainty to AMR’s Chapter 11 restructuring.
Patriot Coal Corp. and its mine workers have reached a settlement in their long-standing labor fight, a deal that gives the workers “significant improvements” over Patriot’s labor-contract changes approved by a judge in May. Read the Daily Bankruptcy Review article via The Wall Street Journal.
This October, Judge Steven Rhodes of the U.S. Bankruptcy Court in Detroit will preside over a trial on whether the city of Detroit was eligible to file for Chapter 9 bankruptcy protection last month.
Against criticism from the U.S. government’s executive-bonus watchdog, attorneys for American Airlines’ parent company defended the $20 million severance payment promised to departing Chief Executive Tom Horton, arguing the bill would be paid once the company merges with US Airways Group Inc. Read the Daily Bankruptcy Review article here.
This week on The Broke and the Beautiful, Detroit’s problems are hitting the small screen, and “Real Housewives of New Jersey” stars Teresa and Joe Giudice were released on bond. Also, rapper DMX is getting a movie part.
Lawyers for Dish Network Corp. Chairman Charlie Ergen and Phil Falcone squared off in front of LightSquared’s bankruptcy judge Thursday, for the first time since Mr. Falcone sued Mr. Ergen over allegedly improper purchases of LightSquared’s debt. Read the Daily Bankruptcy Review article here.
The railway company that operated the train that derailed and exploded last month, killing 47 people and destroying part of a small town in Quebec, sought bankruptcy protection in the U.S. and Canada on Wednesday with the intention to sell the business. Read the Daily Bankruptcy Review article via The Wall Street Journal.
Phil Falcone’s Harbinger Capital Partners LLC sued Dish Network Corp.Chairman Charlie Ergen for fraud, accusing him of secretly acquiring the debt of LightSquared Inc. in order to take control of the telecommunications firm and its wireless spectrum worth billions of dollars. Read the Daily Bankruptcy Review article via The Wall Street Journal.
Ambulance company Rural/Metro Corp. filed for Chapter 11 bankruptcy protection on Sunday after striking a deal with lenders to trim its debt load. Read the Daily Bankruptcy Review article via The Wall Street Journal.
