In an announcement made by US Airways Group, Inc. (NYSE:LLC) today, it has signed a non-disclosure agreement with US Airways Group, Inc. (OTCQB: AAMRQ) AKA AMR Corporation. The NDA will allow Airways Group, Inc. (OTCQB: AAMRQ) and US Airways Group, Inc. (NYSE:LLC) to confidentially disclose sensitive financial information to each other, in order to work on the potential merger.
“A Non-Disclosure Agreement is pretty much what it sounds like,” US Airways CEO Doug Parker says in a statement e-mailed to workers this morning. “We, along with American, have agreed to not publicly disclose anything about the discussions or analysis as we move forward because we don’t believe that would be productive. We have also agreed not to discuss the work that is being done to analyze a potential combination with anyone not covered by the NDA. This agreement will likely remain in place until either a deal has been signed, or we have determined this process will not result in a transaction.”
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“As a result, we will not be able to be as open and candid about the discussions with American, as we usually are about issues that are important to all of us,” Parker adds in the note to employees. “I trust you recognize the importance of signing this NDA and we appreciate your understanding. While we may not be providing regular updates on this process, rest assured your management team is working diligently and aggressively to do what is best for US Airways and our hard-working team members. I will let you know more as soon we are able.”
AMR Corporation , which filed for bankruptcy-court protection last November, had been insisting earlier that it will consider a merger with rivals only after emerging from Chapter 11 as an independent company. But due to the persistent pressure from its creditors, the Fort Worth, Texas company, AMR Corporation , finally agreed in July for a possible merger. As per the Chapter 11, AMR has a right to file for a bankruptcy exit plan till Dec. 28, but its creditors are forcing an alternative plan that could maximize their returns.
AMR Corporation did confirm by late July, that it did send a nondisclosure agreement, developed in collaboration with its creditors committee, to US Airways.
Terms of the deal are still not public, but the NDA could include, prohibiting US Airways Group, Inc. (NYSE:LLC) from talking about the combination publicly, or continuing its merger negotiations with American’s unions or its own labor groups.