Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Reports: AMR Creditors Favor All-stock Combination With US Airways

Creditors of AMR Corp. (AAMRQ), the parent company of American Airlines and American Eagle, are seeking an all-stock merger with smaller rival US Airways (LCC: Quote) and do not want part of their claims to be paid in cash, reports said.

AMR and some of its subsidiaries, including American Airlines and American Eagle, had filed for Chapter 11 bankruptcy protection in November 2011.

In late August, AMR and US Airways had entered into a non-disclosure agreement to evaluate a potential merger of American Airlines and US Airways.

As per that agreement, the companies would exchange some confidential information, and US Airways would work in close collaboration with AMR's unsecured creditors committee to evaluate a potential combination.

It was reported at that time that some members of the unsecured creditors committee had given a positive response to US Airways' plan for the combined airline, targeting to complete the combination before AMR exits bankruptcy.

AMR was one of the few airlines that averted bankruptcy after the 9/11 attacks and subsequent downturn. However, the company reported losses in the following years even as peers resolved cost issues and returned to profit.

Latest media reports suggest that the merger talks are at an advanced stage. A decision on whether AMR should combine with US Airways or emerge out of bankruptcy as an independent airline is said to be expected by next month.

LCC settled down 1.4 percent at $12.70 on Wednesday.

Register
To receive FREE breaking news email alerts for US Airways Group and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Swiss drug maker Roche Holding said a late-stage trial of its breast cancer drug Kadcyla did not provide superior results compared with an existing therapy. FCA US, until recently known as Chrysler, said Friday it is recalling 257,000 Dodge Ram pickups. The auto maker says the rear axle pinion nut on certain model year 2005 Dodge Ram 1500 trucks may loosen due to an undersized spline on the pinion gear. If the pinion nut loosens, the rear axle may... This medical device company has a very impressive track record of growing business over the past decade. increasing sales from $490.2 million in 2004 to $1.72 billion this year. The Silicone Hydrogel daily disposable lens portfolio constitutes a major avenue for growth.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.