AMR Creditors Approve American-US Air Merger: Sources
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The unsecured creditors committee of bankrupt American Airlines parent AMR has approved an $11 billion merger with US Airways Group, sources familiar with the situation said on Wednesday.
The deal will be announced Thursday, the sources said, assuming the boards of both companies approve it Wednesday night.
AMR's unsecured creditors will be made whole under the terms of the deal and also get accrued interest, they added, and AMR's shareholders will also get a small equity stake in the new entity.
The merged company will have a board of 12 members: four from US Airways, three from AMR and five to be designated by the AMR creditors.
That will shrink to 11 members in 2014 after the retirement of AMR Chief Executive Tom Horton.
Unsecured creditors of American Airlines parent AMR have approved an $11 billion merger with US Airways, sources said. The deal is expected to be announced Thursday.