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AMR Risks Losing Control of Bankruptcy Exit
American Airlines parent AMR Corp (AAMRQ). risks losing control of its ability to exit bankruptcy as an independent carrier after three possible suitors emerged within two months of its Chapter 11 filing. (www.bloomberg.com) 기타...
“This could expedite some of the more difficult decisions,” Keay said in an interview from New York. “AMR is going to have to prove to its creditors that its stand-alone exit plan adds more value than a bid by a competitor, and that is likely to be difficult.”
If left alone, the fact that AMR was not cash strapped going in as were the other legacy's, AMR will probably emerge leaner&strong. That being said, creditor and investor greed will not give one tinkers damn about the people or what is best for AA.All they will be concerned about are their own $. None of the suitors named have made an offer yet, they are just assessing making one, meaning they might or might not. TPG would have 2 options: either break it up and sell it piecemeal OR follow on through with AMR's plan and help make it work. I really think US Air is too weak although they already have a strong relationship with MESA, which could be a springboard for getting rid of Eagle. While DAL is financially sound enough to do it, the fact that they are still dealing with the NWA thing is a problem. It has taken them 2-3 years on the NWA deal and they are nowhere near done, on labor or schedule integration. To take on the absorbtion of the 3rd largest airline in the country will really be somethig to watch if it should happen. However it goes, I think Eagle will be a casualty, the routes being replaced with contract, and their maintenance, at least Tulsa, will be farmed out.
If left alone, the fact that AMR was not cash strapped going in as were the other legacy's, AMR will probably emerge leaner&strong. That being said, creditor and investor greed will not give one tinkers damn about the people or what is best for AA.All they will be concerned about are their own $. None of the suitors named have made an offer yet, they are just assessing making one, meaning they might or might not. TPG would have 2 options: either break it up and sell it piecemeal OR follow on through with AMR's plan and help make it work. I really think US Air is too weak although they already have a strong relationship with MESA, which could be a springboard for getting rid of Eagle. While DAL is financially sound enough to do it, the fact that they are still dealing with the NWA thing is a problem. It has taken them 2-3 years on the NWA deal and they are nowhere near done, on labor or schedule integration. To take on the absorbtion of the 3rd largest airline in the country will really be somethig to watch if it should happen. However it goes, I think Eagle will be a casualty, the routes being replaced with contract, and their maintenance, at least Tulsa, will be farmed out.
Wayne I am all with your comments except for the second option that TGP has "follow through with AMRs´plan and make it work". How would this hedge fund, or private equity firm or whatever they are, help AMR to resolve its situation, are you implying that they would become a sizeable stockholder. To me they are aiming at a carve and sell AA piecemeal.
Well, that is the 64$ question, what will they do.What you say is 1 option and to me as well, the most likely. They have been in some Airline buys in the past, albeit partnerships. I think they had CO some years back and Republic. They didn't come out too bad on the CO deal as they weren't a managing partner, but they lost their shirt on the Republic deal as owner, which is why it surprises me that they are even looking at another airline deal. That being said, however structured, the stockholder thing or some form of ownership might work, if they saw merit in AMR's reorganization plan
What ever happens I just hope I can keep my Platinum status and my miles...
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