American Seeks to Finance $750 Million for Boeing PlanesDavid McLaughlin
American Airlines parent AMR Corp. is seeking as much as $750 million in financing backed by aircraft, including Boeing Co. planes that will be delivered this year.
American wants court approval to finance the Boeing aircraft and repay existing aircraft debt maturing in May and July, according to a filing today in U.S. Bankruptcy Court in Manhattan.
The request comes after Fort Worth, Texas-based AMR, which filed for bankruptcy in 2011, won court approval for $1.5 billion in aircraft financing to take advantage of lower interest rates, defeating bondholder opposition.
The $750 million will be backed by the Boeing planes and nine aircraft now owned by AMR, according to the filing. AMR has an agreement to buy as many as four Boeing 777-323ER aircraft scheduled for delivery from April to August, the carrier said.
The case is in re AMR Corp., 11-15463, U.S. Bankruptcy Court, Southern District of New York (Manhattan).