American Airlines creditors want a potential merger with US Airways Group Inc to be an all-stock deal rather than one that pays some claims in cash, three people familiar with the matter said, in a move that underscores confidence in a merged airline. The creditors of American Airlines parent AMR Corp want to capture the full upside from a combination if the airline chooses to emerge from bankruptcy in a merger with its smaller rival, the people said this week.Creditors in bankruptcy often want at least part of their claims paid in cash, rather than in the stock of a reorganized company with an uncertain trading value.AMR creditors' preference for an all-stock deal could be seen as a vote of confidence in the proposed merger and the potential revenue and cost benefits from a deal that would create one of the world's largest airlines.US Airways, in hot pursuit of its bigger rival all year, sounded out AMR creditors about how they wanted to be paid off before proposing a formal all-stock merger proposal at a meeting with the creditors committee in November, the people said.
US Airways Group, Inc. (US Airways Group) is a holding company whose primary business activity is the operation of a network air carrier through its wholly owned subsidiaries, US Airways, Piedmont Airlines, Inc. Shares of LCC fell by 1.4% or $-0.18/share to $12.70. In the past year, the shares have traded as low as $4.97 and as high as $14.51. On average, 5911440 shares of LCC exchange hands on a given day and today's volume is recorded at 4652648.
Source
