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Wednesday, February 13, 2013

AMR creditors OK $11 billion American-US Air merger -sources, (NYSE: LCC)

The unsecured creditors committee of bankrupt American Airlines parent AMR Corp has approved an $11 billion merger agreement with US Airways Group Inc, 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.

US Airways Group, Inc. operates and owns passenger and freight airline carrier. Shares of LCC traded higher by 2.73% or $0.39/share to $14.66. In the past year, the shares have traded as low as $6.78 and as high as $15.64. On average, 6272540 shares of LCC exchange hands on a given day and today's volume is recorded at 10244737.