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AMR Bankruptcy Talk Takes Flight Again
Speculation spurned by negative reviews
Chris Van Horne, NBC 5 News
Concerns that AMR, the parent company of American Airlines, is having financial troubles spurs speculation the airline may file for bankruptcy.
Rumors and concerns that Fort Worth-based AMR could file for bankruptcy have taken off again.
The rumors are fueled by several negative economic factors. Last week, Moody's lowered the outlook on AMR's unsecured debt to negative. That raised questions about whether AMR, the parent company of American Airlines, might finally file for bankruptcy.
Other factors leading to speculation about possible bankruptcy include the airlines' lack of profits, only turning profits in two of the last 10 years and its ability to pay of its debts.
When asked about the possibility of filing for either Chapter 7 or Chapter 11 bankruptcy two weeks ago, AMR Treasurer Beverly Goulet did not reject the possibility of Chapter 11 but did dismiss Chapter 7.
More at the Star-Telegram: Is AMR headed toward bankruptcy?
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