US Airways quietly buying AA's debt

Discussion in 'American Airlines | AAdvantage' started by Mike Reed, Jul 12, 2012.  |  Print Topic

  1. Mike Reed

    Mike Reed Gold Member

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    Well this is a sneaky little end run around the courts...

    From the article:
    Click the link to read more...
     
    paladin87, ella, SC Flier and 6 others like this.
  2. HaveMilesWillTravel
    Original Member

    HaveMilesWillTravel Gold Member

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    Hah! I love it!
     
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  3. mrredskin
    Original Member

    mrredskin Gold Member

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    smart move. they realize that even if they don't acquire AMR, they will probably be turning a profit when they come out of bankruptcy
     
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  4. milchap
    Original Member

    milchap Gold Member

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    AAstute move.
     
  5. mht_flyer
    Original Member

    mht_flyer Gold Member

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    This will definitely help US get a seat at the table and maybe a invite to the dance this time :)
     
  6. anabolism
    Original Member

    anabolism Gold Member

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    Now that AA's cash position has improved, has their debt discount changed? I wonder if US could sell now for a profit (ignoring that their real motivation is a seat at the bankruptcy table)?
     
  7. NYBanker
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    NYBanker Gold Member

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    There is nothing sneaky about this. This is a common strategy to at a minimum to influence a workout.

    While they could be positioning to take over, they could just as easily push to break the carrier up and sell it in parts....assuming they're big enough to get on one of the classes' committees.
     
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  8. MSPeconomist
    Original Member

    MSPeconomist Gold Member

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    In a case like this, where competitors are involved, are there limits on how US can use the information (about planned future strategies, proprietary load and fare data, etc.) that they would therefore obtain from their participation in the bankruptcy negotiations? Can AA do anything to keep some sensitive information away from US?
     
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  9. anabolism
    Original Member

    anabolism Gold Member

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    Hasn't AA already supplied this information in their NDA packages?
     
  10. dkelly1110
    Original Member

    dkelly1110 Silver Member

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    US purchased only $1mm worth of bonds for about 60 cents on the dollar. I honestly don't know what their amount of outstanding debt is, but that doesn't seem to me to be much at all.
    (reported via BB)
     
  11. LXJenkins
    Original Member

    LXJenkins Silver Member

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    I agree - I don't think this necessarily increases the odds of a U.S. Airways/American merger/buyout.
     
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  12. DestinationDavid
    Original Member

    DestinationDavid Milepoint Guide

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    AA's response: Yawn.
     
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  13. folex386

    folex386 Gold Member

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    well this is getting fun!
     

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