Judge clears AMR, US Airways deal for takeoff
A judge on Wednesday approved a settlement resolving U.S. regulators' opposition to a merger between AMR, parent company of American Airlines, and US Airways, allowing AMR to exit bankruptcy and close on a tie-up creating the world's largest carrier.
The Department of Justice had challenged the merger, which was to serve as the basis for AMR's plan to pay back creditors and exit bankruptcy.
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The DOJ's antitrust watchdog had said the plan could impede competition and drive up ticket prices. The sides settled earlier this month, with the airlines agreeing to divest some takeoff and landing rights at major airports.
"Upon the anticipated closing of the merger on Dec. 9, 2013, AMR Corporation will be renamed American Airlines Group Inc," AMR said in a statement.
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After the merger, outstanding shares of US Airways common stock will be converted into one share of American Airlines common stock.
The company said all pre-Chapter 11 unsecured claims against and outstanding equity securities of AMR will be satisfied by American Airlines common stock or preferred stock in accordance with the Plan of Reorganization.
—By CNBC.com with Reuters