Tue, Jun 11, 2013
Company Is Positioned To Emerge From Bankruptcy In The 3rd Quarter Of 2013
AMR Corporation, the parent company of American Airlines, Inc., said Friday that the U.S. Bankruptcy Court for the Southern District of New York entered the order approving the Disclosure Statement filed in connection with the company's proposed Plan of Reorganization (the Plan). The Court also authorized American to begin soliciting votes on the Plan of Reorganization from creditors and stockholders. Solicitation packages will be distributed by June 20 and the voting deadline is July 29. The hearing before the Court to consider confirmation of the Plan is scheduled for Aug. 15, 2013.
The Plan is supported by the Official Committee of Unsecured Creditors. Holders of approximately $1.6 billion of pre-petition unsecured claims also have committed to vote to accept the Plan.
"This is a significant step forward in our efforts to complete the most successful restructuring in aviation history," said Tom Horton, AMR's chairman, president and CEO. "We're in the home stretch of our restructuring and thanks to the hard work of our team, we are positioned to emerge a highly competitive, leading global airline focused on delivering the very best for our customers, our people, and our investors."
The proposed Plan is to become effective concurrently with the consummation of a merger with US Airways. The proposed merger is expected to maximize recoveries for all of the company's economic stakeholders and the proposed Plan provides a recovery of 3.5% of the common stock (on an as-converted basis) of the combined company for holders of existing AMR equity securities, with the potential for such holders to receive additional shares.
Under the terms of the Merger Agreement with US Airways, stockholders of US Airways will receive one share of common stock of the combined company for each share of US Airways common stock then held. The aggregate number of shares of common stock of the combined company issuable to holders of US Airways equity instruments (including stockholders, holders of convertible notes, optionees, and holders of restricted stock units) will represent 28% of the diluted equity ownership of the combined company. The remaining 72% of the diluted equity ownership of the combined company will be issued under the Plan to AMR's stakeholders, AMR's labor unions, and certain employees of AMR.
More News
From 2023 (YouTube Version): Legacy of a Titan Robert (Bob) Anderson Hoover was a fighter pilot, test pilot, flight instructor, and air show superstar. More so, Bob Hoover was an i>[...]
Get The Latest in Aviation News NOW on Instagram Are you on Instagram yet? It's been around for a few years, quietly picking up traction mostly thanks to everybody's new obsession >[...]
Aero Linx: B-52H Stratofortress The B-52H Stratofortress is a long-range, heavy bomber that can perform a variety of missions. The bomber is capable of flying at high subsonic spee>[...]
Altimeter Setting The barometric pressure reading used to adjust a pressure altimeter for variations in existing atmospheric pressure or to the standard altimeter setting (29.92).>[...]
"Knowing that we play an active part in bettering people's lives is extremely rewarding. My team and I are very thankful for the opportunity to be here and to help in any way we ca>[...]