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February 08, 2013

(Reuters) AMR Corp (AAMRQ.PK) creditors plan to meet on Monday to potentially vote on a merger agreement between the bankrupt parent of American Airlines and US Airways Group Inc (LCC.N), several people familiar with the matter said.

The two airlines are working to finalize an agreement over the weekend so the board of each company could also meet to vote on the deal on February 11, the same day when AMR's unsecured creditors committee is scheduled to convene, the people said.

If the parties meet this potential timetable - as currently envisioned but seen as aggressive - a merger agreement could come as soon as Tuesday, the people said, asking not to be identified because the matter is not public. comprar Hondrocream

February 08, 2013

(Dallas Morning News Airline Biz Blog) The three unions representing American Eagle’s employees asked the U.S. Bankruptcy Court to delay a deal in which competitor Republic Airlines would operate jets under the American Eagle brand.

The deal, signed Jan. 23, would have Republic Airlines operate 76-seat jets to feed American Airlines flights, primarily into and out of Chicago’s O’Hare International Airport. The initial deal involves 53 jets, although Republic could acquire another 47 to operate on American’s behalf in the 15-year deal.

The Association of Flight Attendants, the Transport Workers Union and Air Line Pilots Association filed by their objections before the 4 p.m. EDT deadline to respond to the AMR motion. U.S. Bankruptcy Judge Sean Lane is scheduled to consider the matter Thursday, Feb. 14.

February 08, 2013

(Bloomberg) US Airways Group Inc.’s merger talks with bankrupt American Airlines are intensifying as the sides try to agree on control of a combined company before confidentiality accords expire next week, people familiar with the matter said.

No decisions have been made on how ownership would be split between creditors of American parent AMR Corp. and US Airways investors or who would lead the carrier, said four of the people, who asked not to be identified because the discussions are private.

A deal would create the world’s largest airline, vaulting it past the rivals that eclipsed American amid a consolidation wave during the past decade. A combined carrier would be valued at almost $13.1 billion, according to Dan McKenzie, a Buckingham Research Group Inc. analyst in New York.







 

Court Updates

February 01, 2013

American Airlines and the UCC filed a motion that requests that the Debtors be granted a further extension of the exclusive period to file a plan of reorganization for twenty (20) days to and including April 1, 2013 and to solicit votes on any plan of  reorganization to May 31, 2013, without prejudice to the Debtors’ right to seek additional extensions. The Debtors believe that the reasons to extend include: (i) the Debtors’ cases are large and complex, involving worldwide businesses and many faceted legal and business issues that require substantial time and diligence to resolve; (ii) substantial good faith progress has been made in a collaborative, cooperative, viable working relationship with the UCC; (iii) American and the UCC are pursuing their collaborative review of strategic alternatives that might be beneficial to American’s economic stakeholders and the enterprise; (iv) American needs additional time to negotiate the terms of a chapter 11 plan; (v) American is continuing the process of refining its business plan with the UCC; (vi) American is continuing to work with the UCC and with the committee of retired employees to address and resolve American’s retiree health and life insurance benefits; and (vii) American has been paying post petition obligations as they become due.
 
The motion is scheduled for hearing on February 14, 2013 at 11:00 a.m. (Eastern Time) and the objection deadline is February 7, 2013 at 4:00 p.m. (Eastern Time).
 
Lowenstein Sandler LLP
Sharon L. Levine
S. Jason Teele
Paul Kizel
 

Press Releases

February 14, 2013

DALLAS, TX - February 14, 2013 – Leaders from five major unions representing more than 60,000 American Airlines and US Airways employees today voiced their strong support for the merger of AMR Corporation (OTCQB: AAMRQ), the parent company of American Airlines, Inc., and US Airways Group, Inc. (NYSE: LCC). The merger of American Airlines and US Airways was announced today.

>>Download the full press release here.