The U.S. Bankruptcy Court in Manhattan gave AMR Corp. the go- signal to obtain up to $750 million in financing. The bankruptcy court also authorized AMR to use cash on hand to repay its obligations under the May/July aircraft financings. The $750 million financing is secured by four Boeing 777-323ER aircraft scheduled to be delivered to the company between April 2013 and August 2013, and nine other Boeing planes owned by the company. The Debtor said, according to a report by Bloomberg News, it intends to take advantage of "historically low interest rates" to finance the purchase of four new Boeing 777-323 aircraft and refinance nine Boeing 737s already owned. The four new Boeing 777-323ER aircraft are currently scheduled to be delivered to the Debtors between April 2013 and August 2013 pursuant to a prepetition purchase agreement with The Boeing Company. The Debtors usually finance their acquisition of new aircraft, relates Harvey Miller, Esq., at Weil Gotshal & Manges LLP, in New York. Based on a careful review of the market, however, the Debtors have concluded that an EETC financing is the optimal transaction to finance the New Aircraft, he contends. He also asserts that time is of the essence because there can be no assurance that current market conditions will continue. About American Airlines AMR Corp. and its subsidiaries including American Airlines, the third largest airline in the United States, filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 11-15463) in Manhattan on Nov. 29, 2011, after failing to secure cost-cutting labor agreements. AMR, previously the world's largest airline prior to mergers by other airlines, is the last of the so-called U.S. legacy airlines to seek court protection from creditors. American Airlines, American Eagle and the AmericanConnection carrier serve 260 airports in more than 50 countries and territories with, on average, more than 3,300 daily flights. The combined network fleet numbers more than 900 aircraft. The Company reported a net loss of $884 million on $18.02 billion of total operating revenues for the nine months ended Sept. 30, 2011. AMR recorded a net loss of $471 million in the year 2010, a net loss of $1.5 billion in 2009, and a net loss of $2.1 billion in 2008. AMR's balance sheet at Sept. 30, 2011, showed $24.72 billion in total assets, $29.55 billion in total liabilities, and a $4.83 billion stockholders' deficit. Weil, Gotshal & Manges LLP serves as bankruptcy counsel to the Debtors. Paul Hastings LLP and Debevoise & Plimpton LLP Groom Law Group, Chartered, are on board as special counsel. Rothschild Inc., is the financial advisor. Garden City Group Inc. is the claims and notice agent. Jack Butler, Esq., John Lyons, Esq., Felecia Perlman, Esq., and Jay Goffman, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP serve as counsel to the Official Committee of Unsecured Creditors in AMR's chapter 11 proceedings. Togut, Segal & Segal LLP is the co-counsel for conflicts and other matters; Moelis & Company LLC is the investment banker, and Mesirow Financial Consulting, LLC, is the financial advisor. AMR and US Airways Group, Inc., on Feb. 14, 2013 announced a definitive merger agreement under which the companies will combine to create a premier global carrier, which will have an implied combined equity value of approximately $11 billion. The deal is subject to clearance by U.S. and foreign regulators and by the bankruptcy judge overseeing AMR's bankruptcy case. Bankruptcy Creditors' Service, Inc., publishes AMERICAN AIRLINES BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by AMR Corp. and its affiliates. (http://bankrupt.com/newsstand/ or 215/945-7000 ).
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