AMR proposes to exit Chapter 11 and merge with the US Airways Group on December 9

AMR Corporation (American Airlines) (Dallas/Fort Worth) today issued this statement:

Today, the U.S. Bankruptcy Court for the Southern District of New York approved the settlement of the lawsuit reached with the U.S. Department of Justice (DOJ) and certain states relating to the merger of AMR Corporation and US Airways Group, Inc. (US Airways). The court also ruled that the merger may be consummated despite the pendency of a private antitrust lawsuit. As a result of the Court’s rulings, AMR Corporation, the parent company of American Airlines, Inc., today filed with the U.S. Bankruptcy Court for the Southern District of New York a notice that the proposed effective date of the Plan of Reorganization will be December 9, 2013.

Consummation of AMR’s Plan of Reorganization and the merger of US Airways Group, Inc. with and into a subsidiary of AMR Corporation is planned to be completed prior to the securities markets opening on December 9, 2013. Assuming this expected schedule, 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. (Phoenix) will be December 6, 2013.

Upon the anticipated closing of the merger on December 9, 2013, AMR Corporation will be renamed American Airlines Group Inc., with its common stock to be listed and traded on the NASDAQ Global Select Market under the symbol “AAL” and its preferred stock to be listed and traded on the NASDAQ Global Select Market under the symbol “AALCP.”

At the time the Plan of Reorganization becomes effective and the merger closes, each outstanding share of US Airways Group, Inc. common stock will be converted into one share of American Airlines Group Inc. common stock and substantially all pre-Chapter 11 unsecured claims against and outstanding equity securities of AMR Corporation will be satisfied by  American Airlines Group Inc. common stock or preferred stock in accordance with the Plan of Reorganization.

This merger will create the world’s largest airline. It will be the end of US Airways as a stand alone company (operating initially under the American Airlines Group until the merger is finally implemented). The top management of US Airways will essentially take over the new American Airlines.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. American’s Boeing 737-823 N922NN (msn 29523) soars away from Los Angeles International Airport.

American Airlines: AG Slide Show

US Airways: AG Slide Show

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