Matter of course for such large bankruptcies, but will help AA get on a stronger footing to negotiate its eventual possible merger with US Airways.
American Airlines is in talks with a group of hedge funds interested in providing equity financing that would help it emerge from bankruptcy quicker and on a standalone basis, so that it gets on a stronger footing as it negotiates a potential merger with US Airways.
The group of distressed-debt funds holds more than $600 million in AMR bonds, the equity raise currently under consideration is between $1 billion and $2 billion. The investor group includes hedge-fund managers Carlson Capital LP, Claren Road Asset Management LLC, Pentwater Capital Management and Litespeed Management LLC, as well as J.P. Morgan’s J.P. Morgan Securities LLC.
The Daily Newsletter
Our daily coverage of the global travel industry. Written by editors and analysts from across Skift’s brands.
Have a confidential tip for Skift? Get in touch