The currently proposed plan of reorganization (the “Plan”) is based on a merger between the debtors and US Airways Group, Inc. On August 13, 2013 certain governmental plaintiffs filed a complaint against AMR Corporation and US Airways Group, Inc. under federal antitrust laws to enjoin the proposed merger between the two carries (the “DOJ Complaint”). Thereafter, on August 15, 2013, the bankruptcy court held its previously scheduled hearing on whether to confirm the Plan predicated on the proposed merger. At the conclusion of the hearing on confirmation on the Plan on August 15, 2013, the Bankruptcy Court asked for further filings on whether the filing DOJ Complaint should impact confirmation. The TWU filed a statement confirming that the TWU believes that the government’s analysis of the proposed merger misses the mark because the combined carrier will increase competition with the other major carriers (i.e., Delta Airlines and United Airlines, both of which underwent similar mergers in the recent past), offer passengers more options and better service, and protect good-paying U.S. jobs. Further, as set forth in the merger agreement and the Plan, the closing of the merger itself is conditioned on the receipt of all necessary regulatory approvals. TWU believes the antitrust litigation will be resolved in favor of the merger and the transaction will close. The TWU concludes by asking the Bankruptcy Court to confirm that the Plan as satisfying all of the Bankruptcy Code’s requirements for confirmation. A copy of the statement is attached.Download the full document here
Lowenstein Sandler LLP
Sharon L. Levine
Paul Kizel
S. Jason Teele
Tania Ingman