If nothing else, US Airways has a sense of humor. As silly as this may be, it's American's execs that are consistently looking like clowns.
Source: Fort Worth Star-Telegram
Author: Andrea Ahles
US Airways disclosed Thursday that it has purchased some AMR Corp. public debt so it can be a party to the Fort Worth-based carrier’s bankruptcy proceedings.
In the same filing, US Airways said it supports AMR’s request to extend until Dec. 28 its period of exclusivity to file its restructuring plan.
US Airways said that will give American Airlines and the unsecured-creditors committee adequate time to evaluate a possible merger between the airlines.
“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,” US Airways spokesman John McDonald said. “We think this will be particularly important now that AMR has publicly committed itself to a review of strategic alternatives.”
McDonald said the carrier bought $1 million of debt for $600,000. US Airways said it “reserves the right to seek relief” from the court if American and the creditors committee does not examine merger alternatives in a timely manner. U.S. Bankruptcy Judge Sean Lane is to hear AMR’s motion Thursday.
American spokesman Bruce Hicks called the debt purchase “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,” Hicks said. “Our focus remains on creating the strongest company and greatest value for our stakeholders.”
Andrea Ahles, 817-390-7631. Twitter: @Sky_Talk
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