Key Developments: AMR Corp (AAMRQ.PK)
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17 May 2013
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$6.85
$6.92
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27,676,309
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$0.36
Latest Key Developments (Source: Significant Developments)
AMR Corp-US Airways Group Inc Merger Gets Court Approval-Reuters
Reuters reported that AMR Corp, American Airlines' bankrupt parent, has received court approval to merge with US Airways Group Inc and create the airline. But one clause in the merger agreement - a $19.9 million severance package for Tom Horton, AMR's outgoing chief executive - was not approved by the judge at a hearing in U.S. Bankruptcy Court in Manhattan. Full Article
AMR Corp and US Airways Group Inc Merger Gets Board Approval-Reuters
Reuters reported that The boards of AMR Corp and US Airways Group Inc each met on February 13, 2013. to approve a merger. The all-stock merger, which is set to be announced early on February 14, 2013. AMR's bankruptcy creditors will own 72% of the combined airline, which will do business under the American Airlines brand and be based in Fort Worth, Texas. US Airways shareholders will own the rest. The merged company will have a board of 12 members: four from US Airways including its chief executive Doug Parker, three from AMR including chief executive Tom Horton and five to be designated by the AMR creditors. US Airways declined to comment while AMR representatives could not be immediately reached for comment. Full Article
AMR Corp Wants Keep Control Over Bankruptcy Through March 11-Reuters
Reuters reported that AMR Corp has asked a judge to extend by six weeks, through March 11, the period in which it has the exclusive right to propose a plan to exit bankruptcy. The request, made jointly with its creditors' committee, was filed in U.S. Bankruptcy Court in Manhattan. The current exclusive window is set to end on January 28. The exclusivity period bars creditors and other parties from proposing their own plans for how AMR should exit bankruptcy. A hearing on the extension request is set for December 19. Full Article
AMR Corp Can Abandon Pilots' Union Contract-Reuters
Reuters reported that a judge on September 4 ruled that AMR Corp the bankrupt parent of American Airlines, can abrogate its collective bargaining agreement with its unionized pilots, signaling the likely imposition by AMR of unilateral work terms. Judge Sean Lane issued his ruling from the bench at a hearing in U.S. Bankruptcy Court in Manhattan, stating the Company successfully corrected certain issues that had caused him to reject its earlier request. AMR, which needs to save more than $1 billion a year in labor costs to become profitable, can impose temporary work terms on its pilots as the sides continue to hash out long-term deals. The U.S. carrier, which declared bankruptcy last November, has reached deals with most of its unions, but the pilots remain the lone exception. Judge Lane in August denied AMR’s initial request to scrap its current deal with pilots after a three-week trial in April and May, despite agreeing with the bulk of the proposal. AMR went back to court, saying it had met Lane's objections. As labor relations have unraveled at AMR, Chief Executive Tom Horton has lost the support of his unions, which support the aggressive push by smaller competitor US Airways Group to acquire AMR during its bankruptcy. While AMR is exploring the idea, it would prefer to exit bankruptcy as a standalone company and then consider a tie-up. Full Article
AMR Corp And US Airways Announce Non-Disclosure Agreement
AMR Corp and US Airways Group, Inc announced that they have entered into a non-disclosure agreement, under which the companies have agreed to exchange certain confidential information and, in close collaboration with AMR's Unsecured Creditors Committee, to work in good faith to evaluate a potential combination. Full Article
US judge Denies AMR Corp Request To Scrap Pilot Contracts- Reuters
Reuters reported that U.S. judge on August 15, denied a request by American Airlines parent AMR Corp to abandon collective bargaining agreements with its pilots' union, an unexpected decision and setback for bankrupt AMR in its quest to save more than $1 billion a year in labor costs. In a lengthy written ruling in U.S. bankruptcy court in Manhattan, Judge Sean Lane, who is overseeing AMR's Chapter 11 bankruptcy restructuring, turned down American's motion in part because it would give the carrier unrestricted ability to temporarily lay off pilots and engage in code-sharing. Lane said AMR failed to show that such 'unfettered discretion' was necessary for its own operations or that it was common in competitors. AMR said in a statement it would alter its motion and resubmit the request to terminate its agreements with the Allied Pilots Association by August 17. However, Kevin Starke, a bankruptcy analyst at CRT Capital Group, said he is not convinced AMR would be able to resubmit its motion as swiftly as it would like. Full Article
AMR Corp To Advance With Merger Review- Reuters
Reuters reported that AMR Corp the bankrupt parent of American Airlines said on 10 July, 2012 it will press ahead with evaluating potential mergers and will reach out to interested parties, a move set to satisfy some creditors less than impressed with its stand-alone restructuring plan. A source familiar with the situation said AMR sees itself as an acquirer in potential mergers and at least five airlines -- US Airways Group Inc, JetBlue Airways Corp, Alaska Air Group, Republic Airways' Frontier Airlines, and Virgin America -- will be considered Any merger proposals would be weighed against the standalone restructuring plan being developed, the source added. American has faced mounting pressure from vocal members of its creditors committee, led by its labor unions, who have argued that a merger with US Airways would give the combined carrier a network to compete with rivals beefed up by their own mergers. US Airways has expressed interest in a merger and has been courting AMR's creditors. Full Article
AMR Corp's American Airlines And Pilots Union Reach Tentative Contract-Reuters
Reuters reported that pilot union leaders at AMR Corp's American Airlines reached a tentative agreement with management on June 27, 2012, on a steep cost-cutting contract aimed at heading off a threat by the carrier to abandon the current deal in bankruptcy and impose stricter terms. The Allied Pilots Association board voted nine to seven to send the last and best offer to its membership for consideration, the union and the company said. A vote by members is expected in coming weeks, prompting the judge overseeing American's case in New York to postpone a ruling that had been scheduled for June 29, 2012, on whether to allow the airline to abrogate the pilots' contract, the airline said. Ratification by pilots would end years of bitter negotiations and introduce a measure of labor stability to American’s bankruptcy. The airline is seeking more than $1.2 billion in cost cuts from its unions annually, a key factor in its decision to seek Chapter 11 protection from creditors last November. Full Article
US Airways Group Plans Antitrust Filing To Boost AMR Corp Bid-Reuters
Reuters reported that US Airways Group is hoping to file paperwork with U.S. antitrust regulators as early as July for a proposed merger with AMR Corp, the bankrupt parent of American Airlines. US Airways believes securing regulatory approval for its proposed deal would remove one key element of uncertainty from the picture, bolstering its case as AMR's creditors compare the merits of a merger with the carrier's standalone restructuring plan, said the sources, who asked not to be named because they were not authorized to speak publicly about the matter. US Airways Group confirmed its interest in merging with AMR in January. The sources said the exact timing of a filing with antitrust regulators depends in large part on the status of AMR's ongoing contract disputes with its three primary labor unions, and the timeframe could slip beyond July. In addition, US Airways is hoping to make the antitrust filing with the consent of AMR and its creditors, under the bankrupt carrier's recent agreement with its unsecured creditors committee to study alternative restructuring plans, the sources said. US Airways does not plan a unilateral filing, they said. Full Article
US Airways And TPG Plans For Joint Bid For AMR Corp-Reuters
Reuters reported that US Airways and private equity firm TPG Capital may team up to bid for American Airlines' parent, AMR Corp, according to people familiar with the discussions. US Airways has also yet to determine if it would need to bring in a financial partner to fund a potential bid for AMR, they added. Full Article
American Air parent results top estimates
- American Airlines parent AMR Corp , which plans to merge with US Airways Group Inc to form the world's biggest carrier, reported higher-than-expected adjusted quarterly earnings on Thursday, aided by cost-cutting from its bankruptcy restructuring.
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