3.5% stake will be increased - there is no way that AMR shares are worth 3.5% of the combined entity. AMR went into BK with 4B in cash. Hedge Funds picked up the debt at 17 cents and getting back par. They are now targeting the equity shares and gobbling this up. The 3.5% number was likely a throw-away number to shake out the retail at these low levels...This stock is worth more than 3.5% of aggregate
Best case, the Bk judge agrees and truly looks out for the equity committee and sees their side. We just cant sell out to the vultures hedge funds.
In an unusual development for airline bankruptcies, shareholders in bankrupt AMR will receive at least 3.5% of the combined company. They would receive more than 3.5% if other claims are first paid in full.
that judge in favor of debtor and shareholders will not allow pigs like DS Shaw, Avenue Capital to get par for 17cts. If bondholders get 70% of par, shareholders should get 30% of par too. Why advantage fiflthy rich pigs for small shareholders