Holders of $450 million in American Airlines bonds plan to ask a U.S. bankruptcy judge for an order to help ensure they get paid, claiming that the 143 planes that are collateral for their investment could lose too much value, Reuters reported yesterday. The bondholders' agent, U.S. Bank , is expected to argue at a bankruptcy court hearing today that the airline unit of AMR Corp. has neglected its planes, and failed to make hundreds of repairs. They fear that this and other costs could force the value of the planes to sink too low to cover the bonds. The value "will continue to erode as a result of the costs to insure, store, ferry, market and sell the aircraft," U.S. Bank said in court papers.
