Daily News: May 24, 2013

Reuters: Justice Department Opposes AMR CEO’s Severance

Reuters reported that U.S. Trustee Tracy Hope Davis, the Justice Department official charged with regulating bankruptcy cases in New York, filed papers in U.S. Bankruptcy Court arguing that the $20 million severance package for AMR’s chief executive Tom Horton violates bankruptcy law.

Reuters said that Davis contends in bankruptcy severance is only acceptable when it is part of a program applicable to all employees and is not more than ten times the average severance given to non-management employees. Horton’s package meets neither criteria, Davis said, according to Reuters.

To read the full Reuters article click here.

Previously on abfjournal.com:

American Airlines Receives Court Approval for $3.25B Loans, Friday, May 10, 2013