American Airlines parent AMR anticipates that its shares have "significantly appreciated" as a result of its exploring a possible merger with US Airways.
The Fort Worth-based carrier attributes the appreciation to its exploring "strategic alternatives" as part of its reorganisation under chapter 11 bankruptcy protection, according to a stock exchange filing on 8 January.
AMR shares were up more than 127% to about $0.90 on 8 January from less than $0.40 on 8 January 2012.
"Depending upon the ultimate strategic alternative adopted and pursued, there exists a reasonable possibility that there may be value for AMR equity holders consistent with the absolute priority rule," says Harvey Miller, counsel to AMR in its bankruptcy and a partner at Weil, Gotshal & Manges.
American and US Airways signed a non-disclosure agreement in August 2012 to explore a possible merger and the latter presented a merger proposal to American in November. The proposal is understood to be an all stock deal.
Pilot unions at both carriers agreed to a memorandum of understanding outlining an interim labour agreement if the airlines merge earlier in January.