Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
American Airlines Nears Bankruptcy Exit, Merger
Author: Joel R. Glucksman
Date: August 15, 2013
Key Contacts
Back
American Airlines parent AMR Corporation is gearing up to make its formal exit from bankruptcy proceedings, and to enter into a multibillion-dollar merger agreement with US Airways, after receiving approval of its restructuring plan from creditors.
AMR announced that preliminary results reveal at least 88 percent of ballots in each creditor class were cast in favor of the plan, representing more than 97 percent of the claim value in each group. In addition, more than 99 percent of AMR shareholders voted for the plan.
“This is another important milestone toward our launch of the new American,” said Tom Horton, AMR chairman, president, and CEO. “The overwhelming support for our Plan of Reorganization is a testament to the resilience and hard work of the entire American team.”
The approval of the plan moves the company one step closer to not only a bankruptcy exit, but also finalizing its merger with US Airways, the latter of which cannot go into effect until AMR’s restructuring is approved and it emerges from proceedings. The carriers are still awaiting approval from the U.S. Bankruptcy Court for the Southern District of New York and from the U.S. Justice Department, which will determine whether the merger will create a monopoly in any markets, Bloomberg reports. In addition, the carriers are also waiting for approval from the European Union antitrust authorities, the news source added.
US Airways CEO Doug Parker said that while the details get hammered out, the carriers continue to make progress with the merger and both parties expect the deal to close by the end of the third quarter. Once the merger goes into effect, US Airways shareholders will own 28 percent of the new company, with the remaining 72 percent going to AMR creditors, employees, and shareholders.
Final voting results will be certified and filed with the bankruptcy court before an August 15 court hearing.
- Practices: Corporate Transactions & Business, Bankruptcy & Creditors' Rights, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
The Due Diligence Process for NY Condominiums and Cooperatives
While the New York City real estate market can be extremely competitive, moving too quickly often backfires. Before purchasing a condominium or cooperative in New York City, it is important to do you homework. Purchasing property in NYC can involve a dizzying number of legal issues. These include condo and co-op rules, rent restrictions, and […]
Author: Jesse M. Dimitro
Smart Contract Legal Issues: Drafting Agreements for Blockchain
Smart contracts feature a unique blend of legal agreement and technical code. This innovation has the potential to reshape how business is conducted. At the same time, smart contract legal issues around enforceability, jurisdiction, identity, and compliance are common. The legal framework for these self-executing agreements is still evolving. What Are Smart Contracts? Smart contracts, […]
Author: Bryce S. Robins
Are Stay Interviews the Key to Retaining Top Talent?
Retaining top talent continues to be one of the greatest challenges facing employers today. Even in an employer’s market, the loss of a key employee can disrupt operations and result in significant costs. While compensation plays a role, long-term retention often depends on workplace culture, communication, and employee engagement. One increasingly popular strategy for improving […]
Author: Angela A. Turiano
Why Secured Transactions Are Important
Secured transactions form the backbone of a wide range of business dealings, including business loans, mortgages, and inventory financing. Because the stakes are often high and relatively minor oversights can have drastic consequences, lenders and borrowers should thoroughly understand how to form an enforceable security agreement that protects their legal rights. What Is a Secured […]
Author: Dan Brecher
Don’t Cash a “Paid in Full” Check Without Understanding the Legal Implications
Cashing a check marked “paid in full” can be a risky endeavor, particularly if you don’t fully understanding the legal implications. If you are owed more than the amount of the check you accept and deposit, you may waive your right to collect the full disputed amount. That is why you should consider either rejecting […]
Author: Dan Brecher
Changes to Qualified Small Business Stock Will Benefit Startup Founders and Investors
The One Big Beautiful Bill Act of 2025 (OBBBA) significantly impacts federal taxes, credits, and deductions. A key change relating to Qualified Small Business Stock (QSBS) allows greater tax-free gains for investments in startups and other qualifying small businesses. Company founders and other investors should understand how the enhanced tax strategy works or risk missing […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.