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.