You know that feeling like you just can’t wait to get married, so that you can finally become the world’s largest airline, but there’s this whole bankruptcy thing in your way? Probably that’s not something you’ve been worrying about, but it has been on the mind of American Airlines’ parent company, AMR Corp. It filed formal plans to exit bankruptcy, bringing it one step closer to walking down the aisle with US Airways.
When the two companies finally merge in a $11 billion deal, they’ll become the world’s largest airline, prompting some concern that such a ginormous entity could quash competitive pricing for air travel customers. A judge has already given the go-ahead to the merger, so this bankruptcy exit plan just needs the nod from the court and AMR’s creditors, notes Reuters.
The reorganization plan outlines things like executive compensation and how creditors and shareholders will be involved. And guess what? It includes a $19.9 million payout for American CEO Tom Horton, quite similar to the one a judge already smacked down. Since the reorganization needs to be approved by creditors, that payout still might not happen.
And if US Airways CEO Doug Parker somehow loses his job during the merger — and subsequently his future job as the CEO of the new company — he’ll get $19.5 million under the plan.
Does anyone know where these two are registered? We’ve gotta wonder which china pattern they chose.