Replies to post #13112 on American Airlines Group Inc (AAL)

[slacker01]

If it climbed to $29 it would be the equivalent of a 1 for 1 swap. That was based on the formula but it would have to be that number the whole time (120 days).

Now everyone needs to look at this like it is a dividend payment because I can't think of a better layman's term to call it at the moment. Our shares of AAMRQ are gone forever. They no longer exist. What still exists is a record or our previous owned shares and they will pay us a DISTRIBUTION payment based on the number of shares we own and the PPS of AAL at each distribution time. These distribution payments will be payed to us in shares of AAL instead of cash. Depending on the PPS of AAL at the time we can get more or less shares distributed to us. The first payment is based on .066XXX of the total number of shares you owned. The next one will be XXX based on the number of shares you owned and so on until 120 days. This is my understanding of how it will work out in the wash and is the easiest way I can explain this so folks can rest easy and quit trying to figure it out. I could be way out in left field on my understanding but it is what makes the most sense to me after all the reading I have done.

[ByingLastard]

I really don't see what people are having the problem with...but since you've asked
We'll say 1000 AAMRQ shares to start Dec avg value of $26, Jan $27, Feb $28, Mar $29. just for an example

For the equation I'll use ((AAL * 1.58)-23)/AAL) * #AAMRQ Is it accurate? No, it's just an estimate. Strictly an approximation. The real equation is slightly altered. ...but I don't care.
This is what you'd get/ Have
Dec. 9 66.5 AAL 933.5 AAMRQ (4 x 233.38)
Jan. 9 +162.3 AAL 700.1 AAMRQ
Feb. 9 +169.9 AAL 466.8 AAMRQ
Mar. 9 +177.0 AAL 233.4 AAMRQ
Apr. 9 +183.7 AAL --0--
Total 759.4 Shares AAL