wall_street61
13 years ago
No symbol, no trading...probably for the duration of the bankruptcy process, ie at least 2 years, then they will be cancelled.
In summary, this will most likely never trade again.
A private transaction will be the only way to get them or dump them.
If someone had a sizeable position they want to get rid of, about all I'd do is 50 cents per.
mrholty
13 years ago
Interesting research that I came up with.
UAL in BK in 2003 paid 5% to its general unsecured creditors which this would be.
DAL paid between 62-70% to general unsecured creditors.
However in the prosepectus this concerns me:
Because AMR is a holding company, the Debt Securities are effectively
subordinated to all existing and future liabilities of AMR's subsidiaries. This
means that upon the liquidation, reorganization or insolvency of American or any
other subsidiary, the claims of creditors and preferred stockholders of such
subsidiary will generally take priority over AMR's right to participate as a
stockholder in any distribution of the assets of such subsidiary. Even if AMR is
itself a creditor of such subsidiary, and its claims against such subsidiary are
recognized, AMR's claims would still be subordinate to any third-party security
interests in such subsidiary's assets and any senior indebtedness of such
subsidiary.
The Debt Securities will be unsecured obligations but will constitute
"senior debt" of AMR. That is, the Debt Securities will not be subordinated to
any other existing or future unsecured indebtedness of AMR. The Indenture does
not limit the total amount of Debt Securities that we can issue under it, nor
does it limit us from incurring or issuing other unsecured or secured debt. The
Indenture moreover does not contain any provisions that protect you in the event
we issue a large amount of debt or are acquired by another entity.
NASCOW
13 years ago
Officially:
AMR Common Stock and Related Listed Securities to be Delisted
Today : Thursday 29 December 2011
AMR Common Stock and Related Listed Securities to be Delisted FORT WORTH, Texas, Dec. 29, 2011 /PRNewswire/ -- AMR Corporation, the parent company of American Airlines, Inc. and AMR Eagle Holding Corporation, reported that it has received written notification from the New York Stock Exchange (NYSE) advising AMR that its common stock, traded under the symbol AMR, its 9% Debentures due 2016 traded under the symbol AMR 16 and its 7.875% PINES (Public Income Notes) due 2039 traded under the symbol AAR will be suspended from trading on the NYSE, and that the NYSE will apply to the Securities and Exchange Commission to commence delisting procedures for these securities. The suspension will begin prior to the opening of the market on Thursday, Jan. 5, 2012. NYSE advised AMR that it is taking these steps because the average closing price of AMR's common stock fell below the NYSE's continued listing minimum share price standard of $1 over a consecutive 30-trading-day period.
Due to the company's Chapter 11 filing, AMR is not able to affirm an intent to cure the aforementioned share price deficiency and, accordingly, does not oppose the suspension and delisting of its securities.
The company expects that price quotations for its common stock and publicly traded debt securities will be available under new symbols on the OTC Bulletin Board (OTCBB) and Pink Sheets Electronic Quotation Service as early as Jan. 5, 2012. The company will publicly announce the new symbols and their effective date as soon as practicable. Information about these services is available at www.otcbb.com and www.pinksheets.com.
AMR cannot predict what the ultimate value of any of its securities may be, and it remains too early to determine whether holders of any such securities will receive any distribution in the Chapter 11 reorganization. In particular, in most Chapter 11 cases, holders of equity securities receive little or no recovery of value from their investment.
As a result, AMR urges investors to exercise appropriate caution with respect to any existing or future investments in AMR's securities.
About American Airlines
American Airlines, American Eagle and the AmericanConnection® carrier serve 260 airports in more than 50 countries and territories with, on average, more than 3,300 daily flights. The combined network fleet numbers more than 900 aircraft. American's award-winning website, AA.com®, provides users with easy access to check and book fares, plus personalized news, information and travel offers. American Airlines is a founding member of the oneworld® alliance, which brings together some of the best and biggest names in the airline business, enabling them to offer their customers more services and benefits than any airline can provide on its own. Together, its members and members-elect serve more than 900 destinations with more than 10,000 daily flights to 149 countries and territories. American Airlines, Inc. and American Eagle Airlines, Inc. are subsidiaries of AMR Corporation. AmericanAirlines, American Eagle, AmericanConnection, AA.com, and AAdvantage are trademarks of American Airlines, Inc.
AMR Corporation, and certain of its United States-based subsidiaries, including American Airlines, Inc. and AMR Eagle Holding Corporation, on Nov. 29 filed voluntary petitions for Chapter 11 reorganization in the U.S. Bankruptcy Court for the Southern District of New York. More information about the Chapter 11 filing is available on the Internet at http://aa.com/restructuring.
wall_street61
13 years ago
And we have a winner. This may be trading at 15%, but that damn well may be twice what it actually pays....after you wait 2 years. Is it worth it? No. For this to be a decent play, in reality it needs to be in the dollar range, imo.
Section 4068 of ERISA provides for liens that can take priority over secured debt. You can bet the farm that the Pension Benefit Guarantee Corporation, a government entity, will be wanting a priority lien for $10 billion ahead of your precious secured debt, much less unsecured liabilities. Then, to make matters worse, some of the secured debt is secured with assets and leases that AMR will want to kick to the curb. Those guys will want to be paid deficiency claims.
I don't really care what some piss-ant know-it-all hotshot 30 something year old hedge fund managers and/or rating managers think, because they don't know squat.
They are probably stupid enough to think Eagle will still be spun off. Won't happen now, no need to. Slash and burn, and that ignorant 'business judgment' rule in the SDNY will dictate this BK.
dav1234
13 years ago
its a crapshoot right now, no idea how many planes will get "disposed of" or how the unions will negotiate, the pensions scare me, like 10Billion in unfunded liabilities.
its still too fresh, lots of research and guessing on recoveries by the big boys before i take a lotto position.
its good that theres no DIP, those dip boys really get greedy.
Soapy Bubbles
13 years ago
AMR Corporation (AMR), parent company of American Airlines, Inc., anticipates announcing first quarter 2011 earnings on Wednesday, April 20, 2011. In conjunction with the announcement, on that date AMR will host a conference call with the financial community at 2pm Eastern Time. During this conference call, senior management of AMR will review, among other things, details of AMR's first quarter financial results, the industry environment, recent strategic initiatives, the revenue environment, cash flow results, liquidity measures, capital requirements and will provide an outlook for the future.
A live webcast of this call will be available on the Investor Relations page of the American Airlines website ( www.aa.com ). A replay of the webcast will also be available for several days following the call.