The Daily Docket: AMR Adviser Says Stakeholders May Want Merger

Echoing Tuesday’s opinion by the parent of America Airlines’ chief restructuring officer, a restructuring adviser to AMR Corp. said drastic cuts in labor costs are needed. Managing Director David L. Resnick also said the company’s stakeholders will probably want it to explore consolidating with a rival airline after it emerges from bankruptcy. Read the Daily Bankruptcy Review article here.

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US Airways Group thinks a merger with AMR would save at least $1.2 billion a year with even fewer labor cuts than AMR is looking at for its Chapter 11 plan, The Wall Street Journal reports.

Also according to WSJ, the Senate approved a bill that would prevent post office closures and continue Saturday delivery but that also would trigger early retirement for up to 100,000 workers as part of a plan to save $20 billion a year for the U.S. Postal Service.

WSJ reports that more than 220 former car dealers are pressing their case that the government bailout of General Motors and Chrysler violated the Constitution.

Reuters analyzes China’s troubled bad-debt market.

Chrysler Group LLC won’t renew its partnership with lender Ally Financial Inc., making it more likely Chrysler will start its own in-house lending arm, WSJ reports.

According to the Financial Times (sub. req.), veteran private equity investor Christopher Flowers has moved to London from the U.S. because of investment opportunities.

According to Law Blog, a federal judge’s bankruptcy reiterates the problems of so many others.

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