[190813.EN.BIZ] Court Okay Needed, But American Airlines Creditors Approve Merger Plan

NEAR bankrupt AMR Corp, the parent of American Airlines, has received 88 per cent support from creditors and 99 per cent support from shareholders, for management's reorganisation plan calling for a merger with US Air, reports American Shipper.

After a mid-August confirmation hearing in US Bankruptcy Court for the Southern District of New York a ruling is expected on whether to approve or quash the reorganisation plan.

Industry observers expect American's proposed merger with US Airways will win approval from authorities anticipate the deal will be finalised by the fourth quarter, said the report.

AMR has been soliciting support for its reorganisation plan since early June, said the report.

"This is another important milestone toward our launch of the new American. The overwhelming support for our plan of reorganisation is a testament to the resilience and hard work of the entire American team," said AMR chairman Tom Horton.

The European Commission has already indicated it will likely approve the deal, and US authorities are expected to approve the merger by October 1.

The two carriers announced appointments for the cargo side of the combined airline in June. It will no longer be linked to the American Airlines brand.

Source : HKSG.