There were serious accusations against WAMU, JPM, FDIC, and Hedge Funds for the premature and colluded seizure of the Bank and subsequent manipulations of the stock. The threats of lawsuits by the Shareholder Equity Committee has inclined the creditors etcetera to give the shareholders a few crumbs to shut them up and to bring the P.O.R. to effective.
American Airlines simply wants to break their unions' power over the airline; to solve the crippling pensions; to obtain better secured creditors solutions; and resolve other cumbersome issues under the protections of Chapter 11 Reorganization.
The AMR shareholders are expendable to those objectives, and without any legal objections from the shareholders en masse the AMR classes of Common Equity will most likely be replaced with NEW equity as additional security to Secured Creditors first and Unsecured Creditors second, and so on with common equity holders having no value of equity being last.
As an example, a NEW common equity priced at $3 to $5 per share with new Outstanding Shares of 300 to 400 million would give American Airlines $1 to $2 Billion in new funds to further reduce their indebtedness and payments.
American Airlines really is TOO BIG to fail or be allowed to fail or be swallowed up by any other airline because American Airlines is a cornerstone of the U.S. economy, just as General Motors is a cornerstone of the U.S. economy. Take a look at the General Motors P.O.R. to recognize how expendable the prior G.M. shareholders were.
Regretably the AMR common equity is burdensome to any reorganization plans of American Airlines. This will be substantiated whenever the first PLAN Of Reorganization (POR) is filed.
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