American Airlines has filed a disclosure statement and reorganisation plan with the bankruptcy court, the next step in its proposed merger with US Airways.
The Fort Worth-based carrier outlines the proposed $11 billion deal where its creditors will receive a 72% stake in the new American Airlines Group and US Airways stockholders a 28% stake, in the filing with the US Bankruptcy Court for the Southern District of New York on 15 April.
American is seeking a hearing date of 30 May for approval of the disclosure statement, after which creditors can vote on the reorganisation plan. It also requests a hearing date of 15 August to confirm the plan.
The disclosure and reorganisation statement was accompanied by a S-4 filing by American with the US Securities and Exchange Commission (SEC) that outlines the proposed deal for US Airways shareholders, who must vote on the merger at the Tempe, Arizona-based carrier's annual meeting later this year.
Nearly 231.5 million shares valued at $3.6 billion will be registered with the SEC as a result of the merger, according to the S-4.
"This filing represents an important, yet routine, milestone in the merger process and an exciting, positive step forward," says Elise Eberwein, executive vice-president of people, communications and public affairs at US Airways, on the S-4 in a letter to managers at the carrier.
American and US Airways announced their plans to merge on 14 February, and American received bankruptcy court approval for the combination on 27 March.