- January 21, 2013
- Posted by: Richard Feinberg
- Category: News
Lots of decisions have been faced and drastic efforts made over the last fourteen months of the American Airlines bankruptcy case. Just as the possible end to the landmark Chapter 11 case appeared on the horizon, AMR company executives request yet another extension in bankruptcy court for more time to conclude.
Time Is Running Out
AMR asked the bankruptcy court for what is the fifth extension in the case in efforts to continue reviewing options for their case conclusion. The proposed deadline was requested to be moved from March 11 to April 1, in hopes of obtaining a better position to pay creditors and exit bankruptcy independently.
This tactic is AMR’s last ditch effort to avoid a merger with US Airways and resume operations under its own control. Earlier this month, CEO Tom Hornton said that the latest extension would grant the company time to consider “all strategic alternatives” before making the final decision regarding the merger.
While there is no word yet as to the final fate regarding the merger, AMR stock prices jumped significantly in the last weeks in anticipation of the merger between the two airlines. The steep climb in stock prices came as a shock to shareholders, who were not expecting the discussions of a merger to renew their lost investments from the November 2011 filing. As the clock counts down to the deadline, a lot is riding on the conclusion of the case; not just for employees and company executives, but investors as well.