AMR working with creditors for possible financing
NEW YORK (AP) — The parent of American Airlines said a "group of substantial creditors" might be willing to provide financing as part of the airline's bankruptcy reorganization plan, according to a court filing on Wednesday.
The group "represents a substantial and diverse group of creditors of American," the airline wrote in a letter to the judge overseeing its bankruptcy, asking for permission to pay the group's legal expenses.
AMR Corp. has said it will study mergers with other airlines as part of its reorganization planning. US Airways Group Inc. has publicly said it wants to merge with American.
One or more of the creditors who AMR is working with "have expressed an interest in participating and/or providing for equity and other financings" for AMR, according to a letter dated Tuesday from the group to the airline.
This group of creditors is separate from the committee of unsecured creditors. That committee will hold much of the sway over American's reorganization. However, it's not uncommon in bankruptcy cases for other creditors to organize to influence the process as well.
"The negotiations with the Group are an integral part of American's efforts to move forward to achieve the objectives of chapter 11," the airline wrote in its letter.
In a statement late Wednesday, AMR spokesman Sean Collins said it was not unusual for large debt holders to want a voice in reorganization planning "and to potentially provide equity or other financing as part of a plan."
"It also is not uncommon for the debtor to pay fees related to this effort," he said.