AMR asks court for more time on restructuring
DALLAS (AP) — American Airlines' parent AMR Corp. wants another 20 days to put together a reorganization plan under bankruptcy protection.
AMR and the committee representing the company's unsecured creditors filed a motion Friday to extend AMR's exclusive right to present a turnaround plan to the federal bankruptcy court in New York.
It's the fifth time AMR has asked for an extension, but it's shorter than past requests, which could indicate that the company is nearing its exit from Chapter 11. AMR is considering whether to merge with US Airways Group Inc. or remain on its own for now.
AMR's exclusive right to present a turnaround plan is due to expire March 11. The company asked U.S. Bankruptcy Court Judge Sean Lane for an extension to April 1. A hearing on the request was scheduled for Feb. 14.
AMR spokesman Sean Collins said the company has made significant progress in restructuring.
"This work, while progressing well, takes time, and American and the unsecured creditors' committee believe that the proposed extension to April 1, 2013, is appropriate for this process to continue in an orderly and efficient manner," Collins said.
US Airways did not immediately respond to a request for comment.
AMR stock, which is still traded over the counter even while the company goes through bankruptcy, surged again on Friday, rising 31 cents or 24 percent to close at $1.60. That's 2 cents below the closing price the day before AMR filed for bankruptcy in November 2011.
The stock rose 85 percent this week, boosted by a comment from AMR's bankruptcy lawyer that the shares might have some value after bankruptcy because of the company's success in stabilizing its business. Stock in a bankrupt company often becomes worthless and the company issues new shares.