FORT WORTH (CBSDFW.COM/AP) — American Airlines’ creditors could begin voting this month on the company’s turnaround plan and proposed merger with US Airways.
A federal bankruptcy judge in New York gave American’s parent company, AMR Corp., approval Friday to send solicitation material to creditors by June 20.
They’ll have until July 29 to vote.
If creditors go along, the judge could confirm the reorganization plan at a hearing scheduled for August 15, clearing the way for AMR to combine with US Airways and emerge from Chapter 11 protection. After a decade of losses, American Airlines filed for bankruptcy in November 2011.
The new company will dissolve the AMR Corporation. The new combined company will be named American Airlines Group Incorporated.
AMR CEO Tom Horton said his company was “in the home stretch of our restructuring.”
The merger is still being reviewed by antitrust regulators at the Department of Justice. Based on current figures, American would become the biggest airline in the world, surpassing United Airlines in passenger miles.
(©2013 CBS Local Media, a division of CBS Radio Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
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