The US judge overseeing the bankruptcy of American Airlines parent AMR Thursday declined to approve a final reorganization plan following a US lawsuit against American's proposed merger with US Airways.
US Bankruptcy Judge Sean Lane asked lawyers from AMR and other bankruptcy stakeholders for legal briefs on whether to approve the bankruptcy plan in light of the Department of Justice's lawsuit, an American spokesman said.
"While we await the Court's decision on our Plan of Reorganization, we will continue to proceed with the legal process to challenge the DOJ complaint in federal court," said American Airlines spokesman Mike Trevino in a statement.
The Justice Department and several states Tuesday sued to block the American-US Airways merger, arguing the combination would reduce competition and push up fares.
American and US Airways have countered that the merger grants customers access to a broader network and creates another viable global US airline to compete with United and Delta.