By transferring virtually every nickle of debt prior to the bankruptcy filing to the new combined entity Horton has shot the horse he rode in on. On day one the new company will have negative levered free cash flow. If AMR couldn't service its debt before the bankruptcy filing it won't be able to after without at least some of the debt holders (unsecured) getting marked to market (Zero).
Instead his bitter legacy will be a company that cannot service the debt is currently has with cash flow from operations. Why file bankruptcy in the first place????
This airline is in trouble and it hasn't even traded on the stock exchange yet.
It was said on the last cc at noon that the unsecured creditors with the equity swap have the potential to be made whole. - my understanding is the debt is going to be extinguished when they receive stock.