AMR creditors OK $11 billion American-US Air merger: sources
NEW YORK (Reuters) - The unsecured creditors committee of bankrupt American Airlines parent AMR Corp (AAMRQ.PK) has approved an $11 billion merger agreement with US Airways Group Inc LCC.N, people familiar with the matter said on Wednesday.
The deal is on track to be announced on Thursday, the people said, assuming the boards of both airlines approve it late on Wednesday.
The merger would give AMR creditors 72 percent of ownership in the combined company and US Airways shareholders the rest, the people said.
AMR's unsecured creditors are expected to be made whole under the terms and also get accrued interest, while AMR's shareholders will get a small equity stake in the new entity, they added.
The merged company will have a board of 12 members: four from US Airways including its chief executive Doug Parker, three from AMR including chief executive Tom Horton and five to be designated by the AMR creditors, one of the people said.
That will shrink to 11 members in 2014 after Horton steps down following the combined company's first annual meeting, the person added.
All the sources asked not to be named because the matter was not public. US Airways declined to comment while AMR representatives could not be immediately reached for comment.