Bankruptcy Court approves American Airlines merger with US Airways | 11-27-2013
Dallas, Texas | At a 10:00 (ET) hearing, U.S. Bankruptcy Judge Sean Lane issued his decision approving the AMR and American Airlines bankruptcy case and merger. This comes two days before the second anniversary of AMR’s bankruptcy petition date.
The U.S. Department of Justice had filed an antitrust lawsuit to block the merger in August, arguing the deal would raise prices and harm consumers. Under a November 12 proposed agreement, the Justice Department agreed to drop its challenge if the carriers gave up some airport slots. The agreement is subject to approval by the United States District Court in Washington after accepting public comments through February 7, 2014.
“The settlement easily satisfies” bankruptcy requirements and the merger may be consummated “without delay,” Lane said. A more detailed written version of the ruling will be posted on the court’s docket today at noon, he said.
On November 29, 2011, AMR Corporation (American Airlines) and certain of its affiliates (the “Debtors”) filed voluntary petitions for relief under chapter 11 of the United States Bankruptcy Code (the “Chapter 11 Cases”) in the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”). These Chapter 11 Cases were assigned to the Honorable Sean H. Lane and are being jointly administered under the main case, AMR Corporation, Chapter 11, Case No. 11-15463 (SHL).
Judge Lane confirmed AMR’s plan of reorganization on September 12, 2013.