Monday, December 5, 2011

American Airlines Obtains Interim Stock and Claims Order for Trading Requirements

On Nov. 29, 2011, AMR Corporation ("AMR") and certain of its subsidiaries, including American Airlines, Inc. and AMR Eagle Holding Corporation (collectively, the "Debtors"), filed a motion (the "Motion") with the United States Bankruptcy Court for the Southern District of New York (the "Bankruptcy Court") seeking an order (i) restricting certain transfers of interest in AMR Common Stock (trading symbol: AMR), and certain transfers of claims against the Debtors, and (ii) imposing certain notification requirements with respect to substantial owners of AMR Common Stock and substantial owners of unsecured claims against the Debtors (including certain tax-exempt bonds and instruments issued by obligors in leveraged lease and non-leveraged lease structures that represent or subsequently may represent interests in claims against the Debtors). The order is intended to prevent certain transfers of AMR Common Stock and certain transfers of claims against the Debtors that could impair the ability of one or more of the Debtors' estates to use their net operating loss carryovers and certain other tax attributes on a reorganized basis.

On Nov. 30, 2011, the Bankruptcy Court entered an order on an interim basis granting the Motion. All procedures reflected in the interim order currently apply and must be complied with. Accordingly, any acquisition, disposition, or other transfer of equity or claims on or after Nov. 29, 2011, in violation of the restrictions set forth in the interim order shall be null and void ab initio as an act in violation of the automatic stay under sections 105(a) and 362 of the United States Bankruptcy Code. A final hearing on the Motion and requested relief is scheduled for Dec. 22, 2011, at 10 a.m. before The Honorable Sean H. Lane at the Bankruptcy Court, Alexander Hamilton Custom House, One Bowling Green, New York, NY 10004.

The requested relief and interim order apply to "Substantial Equityholders," being persons who are, or as a result of a transaction would become, the beneficial owner of approximately 4.5 percent of the outstanding shares of AMR Common Stock. It also applies to "Substantial Claimholders," being persons who are, or as a result of a transaction become, the beneficial owner of unsecured claims in excess of a threshold amount of unsecured claims. The initial threshold amount is $190 million, but the amount may be subsequently increased or decreased under certain circumstances in connection with the Debtors' filing of a chapter 11 plan. A copy of the notice of the interim order, which includes complete definitions of "Substantial Equityholders" and "Substantial Claimholders" and the applicable notification requirements and restrictions, is available on the website of the Company's claims agent: