AMR Corp.'s American Airlines was sued by a noteholder trustee that says American is required to make a payment owed to investors under the airline's plan to borrow $1.5 billion and repay debt, Bloomberg News reported yesterday. U.S. Bancorp, the trustee for $174.2 million of 13 percent secured notes due in 2016, wants a court order that American is required to pay a make-whole amount under the refinancing plan, according to court documents filed yesterday. AMR, based in Fort Worth, Texas, said in October that it is seeking court permission to borrow $1.5 billion backed by aircraft and redeem existing debt to take advantage of lower interest rates.
http://www.bloomberg.com/news/print/2012-11-08/american-airlines-sued-b…
In related news, hedge fund Marathon Asset Management has withdrawn a request for an independent investigator to examine the books of American Airlines, a unit of bankrupt AMR Corp, lawyers for the companies said at a hearing yesterday, Reuters reported. The move came after AMR agreed to preserve potential clawback claims relating to debt deals, struck between Marathon and AMR, that left American Airlines with $2.26 billion of debt. AMR entered bankruptcy last November, and is considering its options for emerging either as a standalone firm or to merge with smaller competitor US Airways Group, which is making an aggressive takeover push.
http://www.reuters.com/article/2012/11/08/amr-bankruptcy-idUSL1E8M7P9V2…