AMR Sees ‘Reasonable Possibility’ of Shareholder Value..... ABKFQ also?
--- Some similarities? ---
Jan. 9 (Bloomberg) -- AMR Corp., the bankrupt parent of American Airlines, says its value has “significantly appreciated” and there may be a recovery for shareholders, who generally receive nothing in bankruptcy cases.
AMR, which is considering a merger with US Airways Group Inc. (LCC), rose 44 percent to $1.30 at 4 p.m. in New York. It was the highest value since Nov. 28, 2011, the day before the carrier sought bankruptcy protection. The shares trade over the counter.
AMR Corp., which is considering a merger with US Airways Group Inc., notified the Office of the U.S. Trustee of the development in a Jan. 3 letter filed today with the Securities and Exchange Commission.
“Depending upon the ultimate strategic alternative adopted and pursued, there exists a reasonable possibility that there may be value for AMR equity holders,” AMR attorney Harvey Miller wrote in a Jan. 3 letter to the Office of the U.S. Trustee, which monitors bankruptcy proceedings. The document was filed yesterday with the U.S. Securities and Exchange Commission.
AMR’s $460 million of 6.25 percent convertible notes due in October 2014 climbed 3.9 percent to 96.25 cents on the dollar, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The bonds traded at 17.75 cents after AMR filed for Chapter 11.
--- Like Ambac bonds, 12 cents now trading over 70 cents? Not much further to go... ---
“The U.S. Trustee could conceivably appoint an equity committee, although this late in the bankruptcy process, it would be quite rare,” Helane Becker, an analyst with New York- based Dahlman Rose & Co., said in a report today.
Miller, of law firm Weil, Gotshal & Manges LLP, wrote in the letter that AMR previously opposed the formation of an equity committee in the bankruptcy case to represent shareholders because “there did not appear to be a substantial likelihood” that they would receive “any meaningful distribution.”
Press Release: Ambac Financial Group, Inc. – 10 hours ago
NEW YORK--(BUSINESS WIRE)--
Ambac Financial Group, Inc. (“Ambac”) (ticker symbol: ABKFQ) seeks to remind investors, as previously reported, including on page 4 and elsewhere in Ambac’s Annual Report on Form 10-K for the year ended December 31, 2012, that our Fifth Amended Plan of Reorganization, which was confirmed by the United States Bankruptcy Court for the Southern District of New York on March 14, 2012, provides for our common stock to be cancelled. Accordingly, holders of our common stock will not receive any distribution with respect to, or be able to recover any portion of, their investment in such securities. As such, all of our currently outstanding equity securities will be cancelled and have no value upon our emergence from bankruptcy.