US court issues order restricting transfer of AMR stock

Washington DC
This story is sourced from Pro
See more Pro news »

A US bankruptcy court has issued an order restricting shareholders of American Airlines' parent AMR Corporation from transferring stock and claims against the carrier, as the airline begins to work on a restructuring plan.

AMR, which filed for bankruptcy protection on 29 November, had filed a motion with the US Bankruptcy Court for the Southern District of New York that day, seeking the order.

The court granted the request on an interim basis on 30 November. The order restricts transfers of interest in AMR common stock and transfers of claims against the airline. It also imposes notification requirements with respect to substantial holders of AMR stock and substantial owners of unsecured claims against the company.

"The order is intended to prevent certain transfers of AMR common stock and certain transfers of claims against the debtors that could impair the ability of one or more of the debtors' estates to use their net operating loss carryovers and certain other tax attributes on a reorganised basis," said American.

The interim order would apply to substantial shareholders who own 4.5% of outstanding shares of AMR common stock and individuals who own unsecured claims against the airline in excess of $190 million.

A final hearing on the motion is scheduled for 22 December, said the carrier.