Judge Criticizes Icahn-Led Bid for TWA’s Assets

A federal bankruptcy judge strongly criticized a bid by billionaire Carl Icahn for the assets of Trans World Airlines Inc., and suggested that a proposal by AMR Corp.’s American Airlines is the only valid offer. U.S. Bankruptcy Judge Peter Walsh agreed with a TWA attorney who said the Icahn reorganization plan was unacceptable because it arrived late and contained few details. The judge also granted a request by TWA to prevent the Icahn-backed group, TWA Acquisition Group, from presenting witnesses to support its plan to operate the airline. “Your two-page proposal, quite frankly, is almost a joke, and it was submitted after the bid proposal deadline,” Walsh told a lawyer for TWA Acquisition Group at the end of a daylong hearing. The judge also added, “The only proposal on the table with respect to the bid procedure is the one by American.” The hearing is scheduled to resume today, with testimony from TWA Chief Executive William F. Compton.