American Airlines Under The Law of Chapter 11 Bankruptcy. The parent company of American Airlines, AMR Corp., has just been placed under protection from its creditors under Chapter 11 to reduce its debt and costs.
The parent company of American Airlines, AMR Corp.. (AMR), has just been placed under protection from its creditors under Chapter 11 of U.S. law to bankruptcy to reduce its debt and costs.
The record filed Tuesday in federal court of bankruptcy of the District of New York, the company has assets of US $ 24.72 billion, while its debts amounted to US $ 29.55 billion.
The company, headquartered in Fort Worth, Texas, also has US $ 4.1 billion in cash. Flights from American Airlines and American Eagle’s regional division will continue as scheduled.
Its frequent flyer program will also continue to have effect.
AMR said on its website that the use of Chapter 11 has no legal impact outside the United States.
Chapter 11 allows a company in financial difficulty to continue to operate while seeking an agreement with its creditors.
In pre-market, the title of AMR was trading in fall of 60.4% or US $ 0.98 to US $ 0.64 US Exchange in New York. Earlier this year, its price was US $ 7.92.