Outrageous Severance, American Bankruptcy Style

Justice Department opposes AMR's $20 million severance for CEO Horton | Reuters: "(Reuters) - A plan by American Airlines' parent to exit bankruptcy and merge with US Airways Group (LCC.N) is coming under fire from the U.S. Department of Justice over nearly $20 million in severance pay earmarked for outgoing boss Tom Horton.

In court papers filed on Friday in U.S. Bankruptcy Court in Manhattan, U.S. Trustee Tracy Hope Davis, the department's official charged with regulating bankruptcy cases in the New York region, said the severance deal for AMR Corp's (AAMRQ.PK) chief executive violates bankruptcy law.

She asked the court not to approve the outline of the plan that must also be approved by AMR creditors."

'via Blog this'