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September 24, 2013

The Court conducted the thirty-sixth omnibus hearing today.  The main item on the agenda was  a pretrial conference in the case of Fjord v. AMR Corporation, Adv. Pro. No. 13-1392.  The plaintiffs in this action allege antitrust violations under section 7 of the Clayton Act.  This is a separate action from the one brought by the Department of Justice and the Attorneys General pending in the District Court in Washington D.C..  After extensive argument the Court determined that the District Court action should be heard and determined first, with this private action proceeding after the District Court has rendered a ruling.  In the event of a settlement of the District Court action, the parties are to return to the Bankruptcy Court to discuss scheduling. 

In addition, the Court approved the second application for interim compensation filed by counsel to the section 1114 committee for the period December 1, 2012 through March 31, 2013, the fourth omnibus application of the Creditors’ Committee for reimbursement of Committee member expenses and the debtors’ application to employ Ernst & Young LLP.  The Court also sustained the debtors’ eighty-fifth and eighty-sixth objections to claims. 

Finally, the Court will enter an order extending the debtors’ time to assume or reject the AFW lease to December 31, 2013. This extension is procedural only and does not affect the debtors’ substantive motion to assume and assign the AFW lease.  The debtors’ substantive motion to assume and assign the AFW lease is scheduled to be heard at the next omnibus hearing in this case, scheduled for Wednesday, October 16, 2013 at 11:00 a.m.  However, it is likely that this motion will be adjourned to the following hearing scheduled for Tuesday, October 20, 2013 at 11:00.

Lowenstein Sandler LLP

Sharon L. Levine
Paul Kizel
S. Jason Teele
Tania Ingman