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  • AMERICAN AIRLINES-AMR

    Investors OK plans to salvage company

    CEO says approval is 'milestone' in launch of the new American
  • Creditors and shareholders have approved the plan of reorganization proposed by American Airlines and parent company AMR Corp., the company said Thursday.
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  • Creditors and shareholders have approved the plan of reorganization proposed by American Airlines and parent company AMR Corp., the company said Thursday.
    AMR Chairman and CEO Tom Horton called the approval "another important milestone toward our launch of the new American."
    The parent of American Airlines said at least 88 percent of the ballots in each of eight creditor classes voted in favor of the plan. They represented more than 97 percent of the value of the claims in each class, the company said.
    Stockholders holding more than 99 percent of the shares also voted in favor of the plan, AMR said.
    The results are tentative. Officials must file a final count with the U.S. Bankruptcy Court by Aug. 8. U.S. Bankruptcy Judge Sean Lane will hold a hearing Aug. 15 to consider confirming the plan.
    Horton said the "overwhelming support" for the plan "is a testament to the resilience and hard work of the entire American team. Our people have stood tall and remained focused on putting our customers at the forefront of everything we do. That has made all the difference."
    If Lane confirms the plan, that clears the path for AMR and American to emerge from bankruptcy and close their merger with US Airways Group. Officials have projected they expect to exit Chapter 11 and finalize the merger by the end of the third quarter.
    Lane will have a series of objections to consider at the Aug. 15 hearing. A number of parties have said the plan doesn't treat their claims properly; should be delayed until several lawsuits in federal district court have been decided; or is otherwise deficient.
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