Bankruptcy judge approves American-US Airways merger

By VCPOST Staff Reporter

Nov 28, 2013 12:24 AM EST

US Airways and AMR Corporation are nearing the close of their effort to merge. Bankruptcy judge Sean Lane threw out a recent private attempt to block the said deal. The judge gave the clearance for the two airlines to proceed with the deal, according to Financial Times.

US Airways and AMR said the two companies are expected to merge on December 9 before opening of the markets. The merged airline is anticipated to be the largest in the US by sales, the report said.

Joseph Alioto, attorney for a private group, had sought to block the merger. The group claimed the deal would violate antitrust policies. Lane, who handled AMR's bankruptcy case, ruled that the transaction could proceed while Alioto's clients pursue their claims over the deal, said the report.

As announced in February, AMR will exit from bankruptcy through the said merger. Shareholders of US Airways will receive 28% of the AMR shares. The remaining shares will go to AMR's creditors. The two airlines announced their plan to start merging their operations at the beginning of 2014. The combined company will carry the name American Airlines, Financial Times reported.

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