Judge Denies AMR CEO $20M Severance

A judge has rejected a proposed severance payment of nearly $20 million for Thomas Horton, the chief executive of American Airlines parent AMR Corp, saying the payout is not allowed under federal bankruptcy law.

U.S. Bankruptcy Judge Sean Lane in Manhattan made his ruling in a decision on Thursday. The judge on March 27 approved AMR's plan to merge with US Airways Group Inc, a step toward creating the world's largest airline.