Court Amr Us
November 28, 2013 by staff
Court Amr Us, A judge on Wednesday approved a settlement resolving U.S. regulators’ opposition to a merger between AMR Corp and US Airways Group Inc, allowing AMR, the bankrupt parent of American Airlines, to soon close on a tie-up that will create the world’s largest carrier.
Judge Sean Lane, at a hearing in U.S. Bankruptcy Court in Manhattan, called the settlement “fair and equitable” and said it was in the “best interest” of AMR’s creditors in bankruptcy.
AMR said in a statement it will seek to close on the deal by December 9. However, a group of consumers that opposes the merger could delay matters by appealing Lane’s approval.
The U.S. Department of Justice had challenged the merger, which was to serve as the basis for AMR’s plan to exit Chapter 11, where it has been for about two years, and pay back stakeholders. The DOJ’s antitrust watchdog said the plan could impede competition and drive up ticket prices.
The airlines earlier this month agreed to divest takeoff and landing rights and gates at Washington Reagan National, New York LaGuardia and several other airports. The deal needed approval from Lane, who oversees AMR’s bankruptcy.
The consumers who oppose the deal make up a class of plaintiffs that have sued the airlines in a separate lawsuit, alleging the transaction could lead to higher prices, more crowded planes and more expensive in-flight amenities. The group sought a temporary restraining order blocking the plan from going into effect, but Lane rejected it, saying the group failed to offer any evidence of “irreparable harm” if the deal went through.
The group, represented by California lawyer Joseph Alioto, could appeal Lane’s decision. That could add some uncertainty to the timetable for closing the deal, though any appeal would likely be expedited.
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