AMR Corporation, American Airlines’ parent company, has announced it expects to emerge from Chapter 11 bankruptcy protection on December 9 and to complete its merger with US Airways Group, Inc. the same day.
The U.S. Bankruptcy Court for the Southern District of New York has approved the settlement that AMR Corporation and US Airways Group, Inc. reached with the U.S. Department of Justice (DOJ) and several U.S. states of the lawsuit the two companies filed against those parties. The lawsuit related to the planned merger of the two companies to form the largest airline in the world.
AMR Corporation and US Airways Group, Inc. filed the lawsuit after the DOJ and the states had formally opposed the planned merger of the two airline holding companies, on the grounds that it would be anti-competitive for consumers.
The bankruptcy court has also ruled that the merger may be consummated despite the fact a private antitrust lawsuit is still pending against the two companies.
As a result of the court’s rulings, AMR Corporation, the parent company of American Airlines, Inc., has filed with the court a notice that AMR is proposing that its bankruptcy reorganization plan should become effective on December 9.
The merger of AMR Corporation and US Airways Group, Inc. expect to complete their merger immediately after AMR’s bankruptcy reorganization plan goes into effect.
According to American Airlines, the companies plan for consummation of AMR’s reorganization plan and the merger of US Airways Group, Inc. into a subsidiary of AMR Corporation to be completed prior to the opening of the securities markets on December 9.
Assuming they are able to keep to this expected schedule, December 6 will represent the last day of trading of all outstanding securities of AMR, including the common stock trading under the symbol ‘AAMRQ’, and the common stock of US Airways Group, Inc. (which trades on the New York Stock Exchange under the symbol ‘LCC’).