AMR Corp. won court approval yesterday to pay the professional fees for bondholders considering a potential equity infusion that could allow the bankrupt airline to emerge as a standalone company, Reuters reported yesterday. The bondholders group, which holds roughly $900 million in various bond offerings, wants to perform due diligence to explore a financing offering, AMR attorney Harvey Miller said at a hearing. The 12-member bondholder group includes Pentwater Capital Management, Litespeed Management, Claren Road Asset Management and a JPMorgan unit, according to court filings. The fee agreement does not mean the bondholder group will ultimately provide funding on a standalone plan, or that other parties cannot explore providing an equity infusion, said Jack Butler, an attorney for AMR's creditors' committee. Read more:
http://www.reuters.com/article/2012/09/20/amr-hearing-idUSL1E8KK6E02012…
In related news, the union representing pilots at American Airlines yesterday said that it has called no job action at the bankrupt carrier, which this week canceled hundreds of flights citing increased pilot maintenance reports and sick leave usage, Reuters reported. American began implementing cost cuts for its pilots this month after a U.S. bankruptcy judge ruled that the airline could abandon its collective bargaining agreement with the pilots union. The airline, a unit of AMR Corp, said on Wednesday that it canceled about 300 flights for this week out of nearly 24,000 departures planned across its network, including the American Eagle regional division. American cited factors including "an increase in maintenance reports filed by pilots, as well as levels of sick leave usage that have been running higher than historical norms." Read more:
http://www.reuters.com/article/2012/09/20/americanair-pilots-idUSL1E8KK…