Junkman.... Did you hear anything about Judge Lane's ruling today on the release from the disputed claims fund?
The AAL shares that we received in lieu of AAMRQ, some of them have cost basis of $0.
For those shares, I noticed that turbo tax is taxing around 40% on long term capital gain.
Does anyone know why?
Does anyone know how much will be the final distribution?
e.g., if one had 1000 AAMRQ shares on Dev/6/13 , how many AAL shares will be given as a final distribution?
The new OCC document has a section about the delayed settlement. In that section it notes the following:
"OCC will delay settlement of the portion of the AAL1 deliverable associated with the remaining 5% of the
strike price until any additional distributions to AAMRQ shareholders are determined and it has been
confirmed that no additional distributions will be made. Upon determination of any final additional
distributions, OCC will require Put exercisers and Call assignees to deliver the appropriate number of shares.
In the event that no additional distributions are made to AAMRQ shareholders, OCC will settle the remaining
5% of the strike through OCC’s cash settlement system."
So, technically, what's the maximum possible final distribution in terms of % AAL shares?
I brought this over from the AAL board:
Former American Airlines Parent Seeks to Tap Reserves to Pay Stockholders
12:43 pm ET March 23, 2015 (Dow Jones) Print
By Joseph Checkler
American Airlines Group Inc. (AAL) is seeking court permission to distribute more than $230 million in stock it had set aside for claims disputes in its predecessor's Chapter 11 case.
In a Friday filing with U.S. Bankruptcy Court in Manhattan, lawyers for AMR Corp., the prior iteration of American, said that if a judge approves its request, the reserve fund to pay off the disputed claims would still contain more than $290 million in stock. The money would go to those who held the company's equity before it merged with US Airways Group Inc.
In addition to the approximately $237 million that would go to equity holders, an additional $73.1 million in stock will go to those holding certain union-related claims.
Those who owned AMR stock were given 3.5% of the new company's stock as part of the deal. Such a recovery for equity holders is rare in bankruptcy, and the rising price of the stock since distributions began has made these investors even more money.
The stock tied up in the reserve funds is to pay off claims that American has yet to settle, but the company said it has more than enough to make a payout to AMR equity holders while maintaining a cushion for the disputed claims. Some distributions from the fund have already been made to claim holders. A separate fund sets aside money for disputed claims related to aircraft and isn't part of this distribution request.
Sentiment: Strong Buy
I just checked and my AAMRQ stock that always showed in my account now says Worthless Stock Removed as of March 2015, what the heck?
you have a twitter account? you helped us a lot 2 years ago when nobody knew what to do cuz of the bk. Any way to follow your trades here or somewhere else?
I finally tracked down my original purchase of AAMRQ shares. I bought:
364 shares AAMRQ Oct. 31 2013 $7.37 each $2,685.63 total
181 shares AAMRQ Nov. 4 2013 $9.69 each $1,756.84 total
545 total shares of AAMRQ for a grand total of $4,442.47
(this is from what we had in our car fund account)
If I am wanting to figure out my cost basis for AAL shares, am I doing it correctly by looking to see how many shares of AAL were ultimately distributed to my account, then dividing my original cost of $4,442.47 by that many AAL shares? Thanks for helping me double check this.
" The Debtors and the Retiree Committee have consensually agreed to extend the
Deadline by which the Debtors may object to the Claims to July 31, 2015. "
The Retiree Committee claims seem to be dragging on and on. There are 20+ pages of medical claims left to be settled. In terms of receiving the final distribution, this is a setback.
Sentiment: Strong Buy
They are still working on the disputed claims in court. They have one so far on the calendar for March 19th and have court dates for April and May. It could take a while.