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US Airways Group, Inc. Message Board

  • teknowiz teknowiz Feb 21, 2013 2:02 PM Flag

    Jamie Baker's calculation does not make sense

    So we have 28% of combined entity going to LCC shareholders, 69% going to creditors, AMR employees and other claims and 3% going to old AMR shareholders.

    At LCC=15 AMR claimants are made whole, meaning they have received shares in combined entity for the amount of claim which stands at 7.565 billion.

    As LCC price rises above 15, if the new AMR shareholders do not sell, it is their gain on the top of $15 base conversion price. So how does any gains above 15 flow to old AMR shareholders? Do they get more shares issued? Wouldn't that dilute LCC and new AMR shareholders and bring their ownership under agreed 28/69 division?

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