May 11, 2012
AMR Reaches Agreement with Creditors to Explore Sale
According to Bloomberg, American Airlines (AMR) has assured its unsecured creditors committee that it will consider potential mergers as it puts together a reorganization proposal this summer. See Jeffrey McCracken and Mary Schlangenstein, AMR Said Ready to Study Sale Among Options in Bankruptcy, Bloomberg, May 11, 2012 (available here). American has exclusive rights until September to propose a reorganization plan and management had previously insisted that it intended to emerge from bankruptcy before considering any possible mergers. However, last month's news that the union groups on the unsecured creditors committee were in support of a potential takeover bid by US Airways drove speculation that the committee could move to cut short AMR management's exclusivity. Presumably, today's agreement will end that threat in exchange for AMR's agreement to explore options involving other airlines.
May 11, 2012 | Permalink
TrackBack URL for this entry:
Listed below are links to weblogs that reference AMR Reaches Agreement with Creditors to Explore Sale: