AMR Corporation - 7.875% Public Income Notes (PINES) (AAR)

[philipmax]

Hi there Pines holders. This board has been silent for too long.
AMR out of bankruptcy, AAR are alive and well. Reported 100% payout to all creditors. PINES are pfd 7.875% notes due 7/13/2039. Sounds like a debt to me. That'll be $25.00 please. Do I get interest for the 1 yr holdover? Possibly? Stay tuned.

[penny2dollaz]

good point

[wall_street61]

Same status, no trading, no symbol, nothing. Got 5 paper weights in my account still.

[eighty]

Would anyone please have the ticker symbol for other American Airlines share classes?

What is the symbol for American airlines preferred shares, junior note, senior note etc?

I can't seem to find in google. Thanks in advance.

[wall_street61]

You really think they've got 2 years from now in BK

Most likely

[mrholty]

see Wall Streets post #39.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=70766276

WallStreet - You really think they've got 2 years from now in BK. Initial filings were for 12 -18 months. What I've heard from rumors is that they are taking a long time in A/C leases right now (poorly organized is being chartiable) so I could see it going out beyond their timeframe.

Loved the report last night that DL was looking to buy them. That will not happen. Maybe some slots. Hell, knowing the asshole that is Richard Anderson he may want to buy the junk that is AMRs Super80 fleet (MD-83s) and use them to replace the DL DC-9s (ex NW, before that Wisconsin Central). My first time I was presenting to the board making Capital decisions @ NW he came in and picked apart my NPV stating my fuel cost sensitivity was to pessimistic. I was using $.80 as my midpoint, current spot @ the time was $.83 and he wanted to use $.40. Ugh, that delay cost the company an extra $1M in direct costs and estimate $3M in cancellation costs as it screwed the maintenance schedule.

[philipmax]

Does anyone know the new symbol for AAR

[NASCOW]

Contra-CUSIP # - The CUSIP used to indicate your tendered position (representing instructions submitted by Participants to surrender securities). ...lol

[wall_street61]

No symbol, no trading...probably for the duration of the bankruptcy process, ie at least 2 years, then they will be cancelled.

In summary, this will most likely never trade again.

A private transaction will be the only way to get them or dump them.

If someone had a sizeable position they want to get rid of, about all I'd do is 50 cents per.

[etzetrade]

thanks

[mrholty]

I think WallStreets earlier post still stands. I cannot find any notes that show a new symbol.

We know it moved to the OTC so we should be able to see it here.
http://www.otcbb.com/dailylist/

Unfortunately you see the AMR common on the 1/4/2012 daily list but not AAR. At this point, patience.

[etzetrade]

Do you know what is the new symbol for aar? TIA

[wall_street61]

I have 5 whole shares in my fidelity account to track AAR. Right now, and for who knows how long, they are assigned a contra cusip number of '001765866', whatever that means. There is no symbol.

[NASCOW]

what happened to trading with Q with PINE [AAR], i can't find info

[dav1234]

whats new symbol on otc?

[NASCOW]

Great, it makes you wonder who holds all the preferred...If possible lets all buy preferred to compliment AAR ...is it available if so the symbol? lol

[mrholty]

Yep, still too expensive. In my research on their fleet most of their md-80s are now leased through a sale-leaseback which were mostly done in 2009 -2010. Just wait for the fireworks when they dump 30-40 of these. The subordination to aa and eagle creditors sucks for this asset.

[wall_street61]

Trading way to high, imo. Holding company claims get paid after subs do, just like you pointed out.

Pension Plans still an impediment, imo.

[mrholty]

Interesting research that I came up with.

UAL in BK in 2003 paid 5% to its general unsecured creditors which this would be.
DAL paid between 62-70% to general unsecured creditors.

However in the prosepectus this concerns me:

Because AMR is a holding company, the Debt Securities are effectively
subordinated to all existing and future liabilities of AMR's subsidiaries. This
means that upon the liquidation, reorganization or insolvency of American or any
other subsidiary, the claims of creditors and preferred stockholders of such
subsidiary will generally take priority over AMR's right to participate as a
stockholder in any distribution of the assets of such subsidiary. Even if AMR is
itself a creditor of such subsidiary, and its claims against such subsidiary are
recognized, AMR's claims would still be subordinate to any third-party security
interests in such subsidiary's assets and any senior indebtedness of such
subsidiary.

The Debt Securities will be unsecured obligations but will constitute
"senior debt" of AMR. That is, the Debt Securities will not be subordinated to
any other existing or future unsecured indebtedness of AMR. The Indenture does
not limit the total amount of Debt Securities that we can issue under it, nor
does it limit us from incurring or issuing other unsecured or secured debt. The
Indenture moreover does not contain any provisions that protect you in the event
we issue a large amount of debt or are acquired by another entity.

[NASCOW]

Officially:

AMR Common Stock and Related Listed Securities to be Delisted
Today : Thursday 29 December 2011

AMR Common Stock and Related Listed Securities to be Delisted FORT WORTH, Texas, Dec. 29, 2011 /PRNewswire/ -- AMR Corporation, the parent company of American Airlines, Inc. and AMR Eagle Holding Corporation, reported that it has received written notification from the New York Stock Exchange (NYSE) advising AMR that its common stock, traded under the symbol AMR, its 9% Debentures due 2016 traded under the symbol AMR 16 and its 7.875% PINES (Public Income Notes) due 2039 traded under the symbol AAR will be suspended from trading on the NYSE, and that the NYSE will apply to the Securities and Exchange Commission to commence delisting procedures for these securities. The suspension will begin prior to the opening of the market on Thursday, Jan. 5, 2012. NYSE advised AMR that it is taking these steps because the average closing price of AMR's common stock fell below the NYSE's continued listing minimum share price standard of $1 over a consecutive 30-trading-day period.

Due to the company's Chapter 11 filing, AMR is not able to affirm an intent to cure the aforementioned share price deficiency and, accordingly, does not oppose the suspension and delisting of its securities.

The company expects that price quotations for its common stock and publicly traded debt securities will be available under new symbols on the OTC Bulletin Board (OTCBB) and Pink Sheets Electronic Quotation Service as early as Jan. 5, 2012. The company will publicly announce the new symbols and their effective date as soon as practicable. Information about these services is available at www.otcbb.com and www.pinksheets.com.

AMR cannot predict what the ultimate value of any of its securities may be, and it remains too early to determine whether holders of any such securities will receive any distribution in the Chapter 11 reorganization. In particular, in most Chapter 11 cases, holders of equity securities receive little or no recovery of value from their investment.

As a result, AMR urges investors to exercise appropriate caution with respect to any existing or future investments in AMR's securities.

About American Airlines

American Airlines, American Eagle and the AmericanConnection® carrier serve 260 airports in more than 50 countries and territories with, on average, more than 3,300 daily flights. The combined network fleet numbers more than 900 aircraft. American's award-winning website, AA.com®, provides users with easy access to check and book fares, plus personalized news, information and travel offers. American Airlines is a founding member of the oneworld® alliance, which brings together some of the best and biggest names in the airline business, enabling them to offer their customers more services and benefits than any airline can provide on its own. Together, its members and members-elect serve more than 900 destinations with more than 10,000 daily flights to 149 countries and territories. American Airlines, Inc. and American Eagle Airlines, Inc. are subsidiaries of AMR Corporation. AmericanAirlines, American Eagle, AmericanConnection, AA.com, and AAdvantage are trademarks of American Airlines, Inc.

AMR Corporation, and certain of its United States-based subsidiaries, including American Airlines, Inc. and AMR Eagle Holding Corporation, on Nov. 29 filed voluntary petitions for Chapter 11 reorganization in the U.S. Bankruptcy Court for the Southern District of New York. More information about the Chapter 11 filing is available on the Internet at http://aa.com/restructuring.

[wall_street61]

I wasn't a big short squeeze. It was a big pump by all the regulars on the MB's, coupled with several penny stock promotions, and the delisting delay.

Best short opportunity in a long time.

And all those !!!!!! don't change a thing. Commons to zilch.

[ID Supermoney]

How else do explain 233 million shares being traded and float is only 290 million!!

This was squeezed!! By MMs and retail!!

Shorts today are 50 plus million!!


ID

[mrholty]

Short covering on AMR sure. but commons being kept in an airline BK, yeesh.

If you are long for a trade on momo - good luck. If you really being the commons are going to survive - throw the rest of your money in a toilet, it will save you time.

[ID Supermoney]

This stock is also now being covered! Reason for volume and price!

RSI 14 day is around 20 and is in over bought territory!! So covering needs to be done!


ID

[ID Supermoney]

It is called a short squeeze!! Many people shorted this stock down!!

And are now caught!! with many people trying to cover!!

3 day limits are being met with margin covers!!

This is not the stock!!

This is going up in that the common stock is going to be kept!!

GLTA


ID

[mrholty]

I just saw this as well. Was is the codeshare with Hainan? Really a second tier player in China somehow negates the bankruptcy?

[Kharybdis]

I want to know what the purchasers of AMR common stock are smoking. With senior unsubordinated paper trading at 20 cents on the dollar how is the equity trading at $1.00. I know you get a bankruptcy bounce on the popular and widely held stocks but the recent run is pretty incredible.

Someone give me a borrow.

[johnnyk2394]

"As of today, the plans collectively had about $8.3 billion in assets to cover about $18.5 billion in benefits."

http://www.pbgc.gov/news/press/releases/pr12-08.html

[mrholty]

I'm not sure where the $10B number came from as I haven't been through the last Q or any of the BK filings yet. As of Q2 they were $8B underfunded for the PBGC calculations which require 100% funding.

Add in the fact while UA and US in the early 00s used BK to shed their pension obligations both NW and DL did not. In fact the combined entity currently has a pension shortfall of over $11B to bring it up to 100% funded.

I'm not so quick to think there may be no value here. I'll probably be buying some other secured bonds that are not tied to any airframes.

I completely agree that Eagle is going to take a huge hit.

[wall_street61]

And we have a winner. This may be trading at 15%, but that damn well may be twice what it actually pays....after you wait 2 years. Is it worth it? No. For this to be a decent play, in reality it needs to be in the dollar range, imo.

Section 4068 of ERISA provides for liens that can take priority over secured debt. You can bet the farm that the Pension Benefit Guarantee Corporation, a government entity, will be wanting a priority lien for $10 billion ahead of your precious secured debt, much less unsecured liabilities. Then, to make matters worse, some of the secured debt is secured with assets and leases that AMR will want to kick to the curb. Those guys will want to be paid deficiency claims.

I don't really care what some piss-ant know-it-all hotshot 30 something year old hedge fund managers and/or rating managers think, because they don't know squat.

They are probably stupid enough to think Eagle will still be spun off. Won't happen now, no need to. Slash and burn, and that ignorant 'business judgment' rule in the SDNY will dictate this BK.

[mrholty]

Going into BK - the company was offering the pilots 3 and the pilots were countering 7%. Wages were already competitive with DL, and United/Continental for the most part.

I've not seen the unfunded liabilities as that high as their pilots have an A/B scale since the early 90s IIRC.

The other groups; mechanics, FA, gate agents, ramp rats don't really matter as they will take what they get for the most part. They will make some noise but my guess is that their salary isn't going to change much but there will be major work concessions that the average Joe Fueler won't see or understand.

Fleet decisions were already made this summer with the announcement of Airbus and Boeing order and we know what they are going to dump. Going from a 100% boeing shop proably cost them 10% from Boeing so you know they got a good deal from Airbus. A major sticking point with the APA (not ALPA) which will throw an interesting dynamic into this BK is who fly's the 70 and 90 seaters to replace the MadDogs and the 145s.

I need to find a list of who owns what planes as my gut tells me that they should almost own all of their old airframes but I've seen reports that they have leases on some of the MD80s out until 2024 which seems insane.

I agree that right now its early as I don't have a position but Delta and NW's bankruptcies are probably a good proxy. I don't think they will kill all their unsecured creditors as the airlines business is incestous.

[dav1234]

its a crapshoot right now, no idea how many planes will get "disposed of" or how the unions will negotiate, the pensions scare me, like 10Billion in unfunded liabilities.


its still too fresh, lots of research and guessing on recoveries by the big boys before i take a lotto position.


its good that theres no DIP, those dip boys really get greedy.

[mrholty]

Agreed, but one can use DAL and NW bankruptcies as good examples of what eventually happened.

[dav1234]

imo the real key to recovery is the unfunded pension liabilities and all the old planes they want to dispose of, lots of secured debt before AAR has a shot.

[mrholty]

Yeah, I think the secured will get paid. Notice that these guys went in without DIP financing as nowdays BK doesn't affect future bookings like it used to.

Seeking this seem to settle at 16% (4/25) this could be interesting. Need to do some research on what happened with DL and NW when they went BK ahead of pension payments just like AMR did.

My expectation:
Employees - Wages will not cut much, new employees (Pilots) are already on a B scale but work rule changes.
They are going to dump the 762 fleet (why they have been using these as domestic transcons has been stupid. Quicker retirement of MD-80s and my guess is a net reduction of 75 planes from service.

American Eagle will get destroyed as AMR will use this to cancel their agreement with them due to their high market rates and they hold the leases on the EMB-145s (50 seaters). They will hire some other regional and due to scope change with pilots will add 70 seaters.

Hubs-
DFW and MIA fine. I expect shrinking in ORD and LAX.

After BK - They will try to buy B6 and AS.

This may be an interesting play as they are using the DL playbook, imo.

[philipmax]

NEW American CAPITALISM:
Start a new company and run to congress to protect you from competition.
Rely on heavy government subsidies to grow the company like a weed. Give generous pay packages to employees, but make sure that they don't receive immediate cash, all benefits are to be paid in the future.
Load the company with huge debt.
Make sure management gets humongous cash bonuses.

Go to Chapter 11.

Screw the Bond holders, Screw the stockholders and screw the employees.
What a country?!@#$%!@#$?&^%*!!!

[johnnyk2394]

I believe that's unsecured.

"Holders of the Fort Worth, Texas-based company’s unsecured obligations will likely recover 10 percent or less of face value, Bill Warlick, an analyst at Fitch, wrote today in a note to clients."

[wall_street61]

In other words, there may be a lot of disappointed distressed players in this BK.

Like GM, for example.

[wall_street61]

Apparently due to the thinking that the PBGC will have a 10 billion dollar priority claim ahead of everyone else (except restructuring legal fees)due to a shortfall in pension funding.

[wall_street61]

And Fitch is estimating some secured obligations will see less than 10% recovery.

[wall_street61]

Unsecureds, preferreds, commons predicted to get zilch.

[wall_street61]

Just like GM, and the likely recovery may be the same = nada.

[wall_street61]

Thanks to yet another cancerous union

[wall_street61]

Just like the company

[wall_street61]

This place is dead

[Soapy Bubbles]

AMR Corporation (AMR), parent company of American Airlines, Inc., anticipates announcing first quarter 2011 earnings on Wednesday, April 20, 2011. In conjunction with the announcement, on that date AMR will host a conference call with the financial community at 2pm Eastern Time. During this conference call, senior management of AMR will review, among other things, details of AMR's first quarter financial results, the industry environment, recent strategic initiatives, the revenue environment, cash flow results, liquidity measures, capital requirements and will provide an outlook for the future.

A live webcast of this call will be available on the Investor Relations page of the American Airlines website ( www.aa.com ). A replay of the webcast will also be available for several days following the call.

[Soapy Bubbles]

http://www.otcmarkets.com/stock/AAR/company-info