All of that angst and maneuvering, and bankruptcy court judge Sean H. Lane issued a mere five-page ruling, approving the settlement between American Airlines parent AMR Corp., US Airways and the U.S. Department of Justice.
“The Settlement is fair and reasonable, supported by sound business reasons and judgment and otherwise satisfies all of the standards applicable to approval of a settlement under Bankruptcy Rule 9019,” the judge wrote in the ruling (embedded below).
Lane ruled that the settlement “does not materially and adversely” impact claim holders and AMR equity interests.
In approving the settlement, Judge Lane held that AMR Corp. will have to “perform all obligations” under the settlement’s terms such as selling certain slots and facilities.
The bankruptcy court approval fast-tracks the merger, with American and US Airways pointing to December 9 as the date the merger would close.
However, Lane wrote that the bankruptcy court “takes no position” on whether the U.S. District Court in Washington, D.C., which must OK the settlement, should approved the proposed final judgment.
The judge also overruled a motion, known as the Clayton Objection, seeking to block the merger and stemming from a consumer lawsuit alleging that the merger would be anticompetitive.