AMR creditors give the green light on the American-US Air merger

The unsecured creditors committee of bankrupt American Airlines parent AMR Corp has approved an $11 billion merger with US Airways Group Inc, sources familiar with the situation said on Wednesday.

The deal will be announced Thursday, the sources said, assuming the boards of both companies approve it Wednesday night.

AMR’s unsecured creditors will be made whole under the terms of the deal and also get accrued interest, they added, and AMR’s shareholders will also get a small equity stake in the new entity.

The merged company will have a board of 12 members: four from US Airways, three from AMR and five to be designated by the AMR creditors.

That will shrink to 11 members in 2014 after the retirement of AMR Chief Executive Tom Horton.