News Summary: AA-US Airways merger moves closer

News Summary: Bankruptcy court judge moves American Airlines and US Airways closer to merger

Associated Press

MERGER MOVE: American Airlines and US Airways are a step closer to combining after a bankruptcy judge ruled that American's creditors can vote on a turnaround plan that includes a merger.

SHAREHOLDERS REWARDED: Under the merger plan, shareholders of American's parent, AMR Corp., would get stock equal to at least 3.5 percent of the new company. That's unusual in a bankruptcy case.

CEO ON HOLD: AMR CEO Tom Horton expects $19.9 million in cash and stock as severance — he'll leave shortly after the merger. But the judge delayed a ruling on the payout until this summer.

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