US Airways Becomes Creditor for AMR - NBC 5 Dallas-Fort Worth

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US Airways Becomes Creditor for AMR

US Airways says it paid $600,000 for AMR bonds with face value of $1 million



    US Airways said in a filing in U.S. bankruptcy court that it is a creditor of AMR Corp., the parent company of American Airlines. (Published Friday, July 13, 2012)

    US Airways has filed paperwork with a federal bankruptcy court to become a creditor for American Airlines parent AMR Corp.

    US Airways said in a filing Thursday that it supports AMR's request for more time to draft a reorganization plan. But the Phoenix-based airline said it could change its mind if AMR, which wants to stay independent, doesn't follow through on a promise to seek alternatives, such as a merger.

    "We own a small amount of AMR's publicly traded debt," US Airways spokesman Bill McGlashen said in a statement to NBC 5. "We purchased the debt to ensure that we would have standing to participate in proceedings before the bankruptcy court in AMR's Chapter 11 case. We think this will be particularly important now that AMR has publicly committed itself to a review of strategic alternatives."

    In a statement, Fort Worth-based American Airlines told NBC 5 the court filing was a "meaningless ploy to garner publicity."

    "US Airways admits they own a very small amount of debt, which gives them no special position with the court or in this process," American spokesman Bruce Hicks said. "Our focus remains on creating the strongest company and greatest value for our stakeholders."

    US Airways spokesman John McDonald told The Associated Press that his airline paid $600,000 for AMR bonds with a face value of $1 million so that it could participate in the bankruptcy case.

    AMR CEO Thomas Horton said a letter Tuesday that it was time to consider options that included a possible merger with another airline.

    American Airlines Merger:
    Complete coverage of the merger between American Airlines and US Airways into the newly-formed Fort Worth-based company, American Airlines Group (AAL). Click here for more.