AMR Seeks Bankruptcy Court Approval for Revised Contracts
AMR Corp. (AAMRQ) sought bankruptcy court approval for restructured contracts with its aircraft and jet engines suppliers that the carrier said will help it switch to more fuel-efficient planes as part of its reorganization.
AMR, the parent company of American Airlines, filed redacted settlement agreements with Boeing Co. (BA), Airbus SAS, General Electric Co. (GE) and Rolls-Royce Plc in U.S. Bankruptcy Court in Manhattan.
“A fundamental element of the debtors’ business plan is the investment in newer, more efficient narrow-body and wide- body aircraft which will, among other things, provide a superior in-flight experience to American’s customers, and generate significant fuel and maintenance savings,” the company said yesterday in its request for approval of the Boeing settlement.
The restructured agreements will in “no way adversely impact” AMR’s pursuit of strategic alternatives, the company said in the request.
AMR, based in Fort Worth, Texas, is in merger talks with US Airways Group Inc. (LCC), people familiar with the matter said last month. AMR’s board will meet Jan. 9 to decide whether to go ahead, with an announcement possible within days, said the people.
The case is in re AMR Corp., 11-15463, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
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