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AMR: Deal Settling Antitrust Plaintiffs' Reorganization Plan Should Be Honored

NEW YORK - Bankrupt AMR Corp., the parent company of American Airlines Inc., on Sept. 9 filed a brief arguing that the group of airline customers that has filed an adversary proceeding against AMR alleging that the proposed merger of American Airlines with US Airways Group Inc. violates antitrust laws should not be permitted to object to the confirmation of AMR's Chapter 11 plan of reorganization (In Re: AMR Corporation, No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.)

State Of Michigan Joins Suit Alleging American, US Airways Merger Violates Law

WASHINGTON, D.C. - The U.S. Department of Justice (DOJ), which is suing US Airways Group Inc. and American Airlines Inc. alleging antitrust violations related to their proposed merger, on Sept. 5 amended its complaint to add the State of Michigan as a plaintiff (In Re: United States of America v. US Airways Group Inc., et al., No. 13-01236, D. D.C.).

AMR Creditors Committee: DOJ's Trial Plan Would Worsen 'Harmful Uncertainty'

WASHINGTON, D.C. - The Official Committee of Unsecured Creditors (committee) in the Chapter 11 bankruptcy of AMR Corp., the parent company of American Airlines Inc., on Aug. 29 filed a brief in the antitrust lawsuit filed by the U.S. Department of Justice (DOJ) opposing the merger of US Airways Inc. and American Airlines, arguing that the DOJ's proposed trial schedule "would exacerbate harmful uncertainty" (United States of America v. US Airways Inc., et al., No. 13-01236, D. D.C.).

American Airlines, US Airways: Government Wrong; November Trial Date 'Reasonable'

WASHINGTON, D.C. - US Airways Inc. and American Airlines Inc. filed a joint reply brief I in the U.S. District Court for the District of Columbia on Aug. 28, arguing that the U.S. Department of Justice's (DOJ) motion to set a March trial date for the prosecution of its antitrust lawsuit opposing the merger of the two airlines would cause risk and harm to American Airlines' ability to emerge from Chapter 11 bankruptcy (United States of America v. US Airways Inc., et al., No. 13-01236, D. D.C.).

Government Says 6 Months Of Discovery Needed In American Airlines Antitrust Trial

NEW YORK - The U.S. Department of Justice (DOJ) on Aug. 27 filed a brief and a proposed scheduling order in its antitrust lawsuit seeking to prevent the planned merger of American Airlines Inc. and US Airways Inc., arguing that "given what is at stake," the district court hearing the case should allow both sides "a full opportunity" to develop evidence in discovery in preparation for a trial (United States of America v. US Airways Inc., et al., No. 13-01236, D. D.C.).

U.S. Attorney Seeks Injunction Blocking American Airlines Merger 'In Its Entirety'

NEW YORK - The U.S. attorney for the Southern District of New York on Aug. 23 filed a statement in the Chapter 11 bankruptcy of AMR Corp., the parent company of American Airlines Inc., seeking a permanent injunction blocking "in its entirety" the proposed merger of American Airlines and US Airways Inc. (In Re: AMR Corporation, No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.).

FTC Settles Charges That Georgia Hospital Merger Is Anti-Competitive

WASHINGTON, D.C. - The Federal Trade Commission and the Hospital Authority of Albany-Dougherty County and Phoebe Putney Health System Inc. on Aug. 22 settled FTC charges that the acquisition of Palmyra Park Hospital harmed competition in six Georgia counties (In the Matter of Phoebe Putney Health System, Inc., et al., No. 9348, FTC).

Airline Customers: AMR Merger Should Not Be Confirmed While Lawsuits Are Pending

NEW YORK - A group of individuals who have already sued bankrupt AMR Corp. opposing its proposed merger with US Airways Inc. on antitrust grounds on Aug. 22 filed a brief arguing that the deal should not be confirmed while there is an additional antitrust lawsuit pending by the U.S. Department of Justice (DOJ) (In Re: AMR Corporation, No. 11-015463, Chapter 11, S.D. N.Y. Bkcy.).

3rd Circuit: Workers Entitled To More Than $14.76M From Railroad Merger Agreement

PHILADELPHIA - A panel of the Third Circuit U.S. Court of Appeals on Aug. 14 affirmed an award of $14,761,238 to a group of former railroad employees who said they were owed benefits as a result of an agreement that they entered with the Pennsylvania Railroad Co. prior to the merger that created the Penn Central Transportation Co. (PCTC) (In The Matter of: Penn Central Transportation Company, No. 12-3807, Chapter 11, 3rd Cir.).

U.S. Government, 6 States Seek Injunction Blocking Merger Of American, US Airways

WASHINGTON, D.C. - The U.S. Department of Justice on Aug. 13 filed a lawsuit against US Airways Group Inc. and AMR Corp., the parent company of American Airlines Inc., seeking a full injunction to prevent the proposed merger of the two airlines on grounds that it violates federal antitrust law and that "consumers will get the shaft" (United States of America, et al. v. US Airways Group, et al., No. 13-01236, D. D.C.).

Committee: Bankrupt AMR's Reorganization Plan Should Be Approved Without Delay

NEW YORK - The Official Committee of Unsecured Creditors in the Chapter 11 bankruptcy of AMR Corp., the parent company of American Airlines Inc., on Aug. 8 filed a brief in support of confirmation of the airline's second amended joint Chapter 11 plan that is premised on the proposed merger of American Airlines and US Airways Inc. (In Re: AMR Corporation, No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.).

Airline Customers: Merger Of American, US Airways Is Antitrust Violation

NEW YORK - A group of airline customers on Aug. 6 filed an adversary complaint against bankrupt AMR Corp., the parent company of American Airlines Inc., in the U.S. Bankruptcy Court for the Southern District of New York, alleging that the proposed $11 billion merger of American Airlines and US Airways Group Inc. would be a violation of federal antitrust laws (Carolyn Fjord, et al. v. AMR Corporation $(In Re: AMR Corporation$), No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.).

European Union's Competition Commission Conditionally OKs American Airlines Merger

BRUSSELS, Belgium - The European Commission, a division of the European Union in charge of competition policy, on Aug. 5 announced that it had granted conditional approval to the proposed $11 billion merger between bankrupt American Airlines Inc. and US Airways.

5th Circuit Affirms Merger Not 'Sale' For Purposes Of Depreciation Under Medicare

NEW ORLEANS - A panel of the Fifth Circuit U.S. Court of Appeals on July 12 affirmed the denial of a request for a loss payment made by a Medicare provider following a merger, finding that the merger was not a bona fide sale as required by the Medicare statute (Memorial Hermann Hospital v. Kathleen Sebelius, secretary of the Department of Health and Human Services, No. 12-20654, 5th Cir.; 2013 U.S. App. LEXIS 14232).

Pharmacies' Monopsony Challenge To Medco, Express Scripts Merger Is Dismissed

PITTSBURGH - A federal judge in Pennsylvania on June 28 dismissed claims made by pharmacies and pharmacy trade groups that the consummated $29 billion merger of pharmaceutical benefit management (PBM) companies Express Scripts Inc. (ESI) and Medco Health Solutions Inc. gave the merged PBMs monopsony power as purchasers of retail community pharmacy services in state markets (National Association of Chain Drug Stores, et al. v. Express Scripts, Inc., et al., No. 2:12-cv-00395-CB, W.D. Pa.; 2013 U.S. Dist. LEXIS 90763).

Magistrate Judge Denies Majority Of Engineering Company's Motion To Compel

TRENTON, N.J. - An engineering company defending claims that it was negligent and breached express and implied warranties when designing precast panels for use in the construction of an ultraviolet water disinfection facility in Valhalla, N.Y., can have access to a report containing the results of an investigation into the cause of the formation of cracks on the panels, a federal magistrate judge in New Jersey ruled June 18, but he denied the company's request for subsequent reports, finding that they were prepared in anticipation of litigation (JPC Merger Sub LLC v. Baker Engineering and Risk Consultants Inc., No. 12-2825, D. N.J.; 2013 U.S. Dist. LEXIS 84979).

FTC, Hospitals Agree To Preliminary Injunction Halting Merger

ALBANY, Ga. - A federal judge in Georgia on June 5 approved the terms of a preliminary injunction agreed to by the Federal Trade Commission and Putney Health System Inc., enjoining the further integration of Georgia hospitals (Federal Trade Commission, et al. v. Phoebe Putney Health System Inc., et al., No. 1:11-cv-58, M.D. Ga.; 2013 U.S. Dist. LEXIS 68658).

AMR Reorganization Plan Would Issue Stock In New Company To Satisfy Some Claims

NEW YORK - Bankrupt AMR Corp., the parent company of American Airlines Inc., on June 5 filed a declaration supporting its amended Chapter 11 reorganization plan that calls for the full satisfaction of general unsecured guaranteed claims by issuing new common stock in the company formed by the merger of American Airlines with US Airways Inc. (In Re: AMR Corp., No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.).

AMF Bowling Seeks Approval Of $310M Loan With Credit Suisse, Merger With Bowlmor

RICHMOND, Va. - Bankrupt AMF Bowling Worldwide Inc. on May 18 moved in the U.S. Bankruptcy Court for the Eastern District of Virginia for authorization to enter a credit agreement with Credit Suisse Securities LLC with a total value of $310 million that would also merge the company with Bowlmor, an independent operator of bowling centers (In Re: AMF Bowling Worldwide Inc., No. 12-36495, Chapter 11, E.D .Va. Bkcy.).

FTC Entitled To TRO In Merger Case, Georgia Federal Judge Rules

ALBANY, Ga. - A federal judge in Georgia on May 15 granted the Federal Trade Commission's motion to temporarily enjoin Phoebe Putney Health System Inc. from taking any further steps to consolidate Georgia hospitals and from making any price changes to existing contracts following the U.S. Supreme Court's recent ruling that the state-action doctrine does not immunize the merger from antitrust scrutiny (Federal Trade Commission, et al. v. Phoebe Putney Health System Inc., et al., No. 1:11-cv-58, M.D. Ga.; 2013 U.S. Dist. LEXIS 68658).

FTC Seeks Expedited Remand In Hospital Merger Case

ATLANTA - The Federal Trade Commission on April 18 asked the 11th Circuit U.S. Court of Appeals to issue an expedited order remanding its challenge to the merger between Georgia hospitals following the U.S. Supreme Court's recent ruling that the state-action doctrine does not immunize the merger from antitrust scrutiny (Federal Trade Commission v. Phoebe Putney Health System, Inc., et al., No. 11-12906, 11th Cir.).

Judge Won't Strike Expert Testimony In Sprint Nextel Merger Suit

KANSAS CITY, Kan. - Although an attempt by lead plaintiffs in a securities class action lawsuit to file expert testimony in a reply brief "constitutes new evidence," striking the testimony "would improperly inhibit a determination of market efficiency on the merits," a federal judge in Kansas ruled in an opinion made available March 27 (Cora E. Bennett v. Sprint Nextel Corp., et al., No. 09-2122, D. Kan.; 2013 U.S. Dist. LEXIS 41161).

U.S. Trustee Opposes AMR, US Airways Merger; CEO's Bonus Violates Bankruptcy Law

NEW YORK - The U.S. trustee in the Chapter 11 bankruptcy of AMR Corp., the parent company of American Airlines Inc., on March 25 filed a sur-reply brief in the U.S. Bankruptcy Court for the Southern District of New York objecting to the proposed $11 billion merger of AMR and US Airways Group Inc. (In Re: AMR Corporation, No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.).

2 Creditor Groups Support AMR, US Airways Merger

NEW YORK - Two committees in the Chapter 11 bankruptcy of AMR Corp., the parent company of American Airlines Inc., on March 22 filed statements in the U.S. Bankruptcy Court for the Southern District of New York approving the merger of American Airlines and US Airways Group Inc. (In Re: AMR Corporation, No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.).

Judge Remands Reinsurance Dispute Because Of Service-Of-Suit Clauses

NEW YORK - A federal judge in New York on March 11 granted an insurer's motion to remand an asbestos-related reinsurance dispute to state court, holding that the service-of-suit clauses in three of six reinsurance agreements at issue amount to a waiver of the reinsurer's right to remove the case to federal court (The Insurance Company of the State of Pennsylvania v. TIG Insurance Company $(as successor by merger to International Surplus Lines Insurance Company$), No. 12-cv-06651, S.D. N.Y.).