U.S. Markets closed

AMR wants more time to draw up bankruptcy plan

FORT WORTH, Texas (AP) -- American Airlines, which has agreed to merge with US Airways, wants more time to file a bankruptcy reorganization plan.

On Wednesday American parent AMR Corp. asked a federal bankruptcy judge in New York to extend its exclusive right to file a reorganization plan by six weeks, to May 29. The judge has approved several previous extensions.

AMR filed for bankruptcy protection in November 2011 and announced the deal with US Airways Group Inc. last month. The merger requires approval from the bankruptcy judge, federal antitrust regulators, and shareholders of both companies.

Separately, bankruptcy judge Sean Lane approved letting Republic Airlines operate 47 regional jets — smaller than the planes operated by American — under the American Eagle name.

The judge also approved a request by creditors to hire the executive-search firm of Heidrick & Struggles to help recruit new directors for the company. Under the merger agreement, the new American will have 12 directors: three from AMR, four from US Airways and five picked by creditors.

And the judge approved the hiring of law firm Jones Day to advise American on antitrust issues and on lawsuits the airline filed against the Transportation Security Administration to be paid for money spent on a new, more secure baggage-handling system at New York John F. Kennedy International Airport.