American, US Airways Merger Expected to Close Dec. 9

A U.S. Bankruptcy Court has approved a settlement reached last month by American Airlines’ parent company AMR Corp. and the U.S. Department of Justice (DOJ), which previously had filed a lawsuit against the company in order to block its proposed merger with US Airways. The approval ends the dispute and allows the merger to move forward. According to American Airlines, the merger is now expected to close on Dec. 9.

Upon the anticipated closing of the merger next week, AMR Corp. will be renamed American Airlines Group Inc., with its common stock to be listed and traded on the NASDAQ Global Select Market under the symbol “AAL” and its preferred stock to be listed and traded on the NASDAQ Global Select Market under the symbol “AALCP.”

Also upon closing of the merger, outstanding shares of US Airways common stock will be converted into shares of American Airlines Group common stock.

In addition to ending its dispute with DOJ, the merger signals AMR Corp.’s emergence from Chapter 11 bankruptcy, as all pre-Chapter 11 unsecured claims against the company will be satisfied by American Airlines Group Inc. common stock or preferred stock in accordance with AMR’s reorganization plan.