Jan 8 AMR Corp, the parent of
American Airlines, said its business prospects have improved to
the point equity holders might receive some value from its
Chapter 11 reorganization.
AMR, which filed for bankruptcy in November 2011, is
weighing merging with rival US Airways Group Inc against
exiting Chapter 11 as a standalone company.
When companies go bankrupt, their stock is usually wiped
out. AMR originally opposed the appointment of an equity
committee in its Chapter 11 case because of an initial view that
shareholders did not stand much chance of recovering anything
But in a Jan. 3 letter to the U.S. Justice Department, made
public in a federal filing on Tuesday, AMR cited a "change in
circumstances concerning the potential economic interests of AMR
The letter, written by AMR attorney Harvey Miller, says the
carrier has made progress over the past year and its value has
The case is In re AMR Corp et al, U.S. Bankruptcy Court,
Southern District of New York, No. 11-15463.