The parent of American Airline, AMR
Corporation (PINK:AAMRQ), is in talks with a “group of substantial creditors”
who might provide funds as part of the company’s bankruptcy reorganization plans. In a filing in the U.S. Bankruptcy Court in Manhattan, the Fort Worth,
Texas-based company has mentioned that these creditors are willing to
participate in AMR’s restructuring plans.
It says, “The negotiations with the group are an integral part of
American’s efforts to move forward to achieve the objectives of Chapter 11.” It
goes on to say that “the commitments, if obtained, will facilitate the proposal
and confirmation of a chapter 11 plan”.
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The company is also willing to
consider the option of merging with another airline. U.S.
Airways Group Inc. has already expressed its interest in such a merger
publicly. This ad hoc creditors group is distinct from the committee of
unsecured creditors, which actually has a greater say in American’s
reorganization plans. However, in bankruptcy
cases, it is often seen that other creditors also significantly influence the
reorganization process.
According to AMR spokesman Sean
Collins, large debtors wanting to be a part of reorganization planning is not
all that unusual. He has said, “These debt
holders have a direct interest in ensuring that AMR emerges as a healthy
company.”
The airline has asked for
permission to pay the legal expenses of the creditors’ group. "It also
is not uncommon for the debtor to pay fees related to this effort,” said
Collins.
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