AMR Corporation Announces Conversion Rate for Holders of Convertible Election Notes

Published on : Thursday, November 28, 2013

American AirlinesAMR Corporation (“AMR”), the parent company of American Airlines, Inc., today announced the applicable Conversion Rate (as defined below) for holders (each, a “Holder”) of Allowed AMR General Unsecured Guaranteed Claim in AMR Class 3 with respect to the 6.25% Convertible Senior Notes due 2014 (CUSIP # 001765BC9) and the 4.5% Convertible Notes due 2024 (CUSIP # 001765BB1) issued by AMR (each such claim, a “Convertible Note Claim”).

 

Pursuant to Section 5.15 of the Fourth Amended Joint Chapter 11 Plan of AMR and its related debtors, dated September 23, 2013 (as the same may be amended, supplemented, or modified from time to time, the “Plan”), and the corresponding Election Instructions previously provided (the “Election Instructions”), any holder of an Allowed Convertible Note Claim has the right to irrevocably elect to have all or any portion of its Allowed Convertible Note Claim treated under the Plan as an Allowed AMR Equity Interest in AMR Class 5 as a result of the “deemed conversion” of the Convertible Notes to which the Allowed Convertible Note Claim relates into a number of shares of AMR Common Stock (a “Conversion Election”).

 

Assuming an Effective Date of December 9, 2013, if a valid Conversion Election is made with respect to an Allowed Convertible Note Claim, the Convertible Notes underlying the portion of the Allowed Convertible Note Claim with respect to which such Conversion Election is made (such Convertible Notes, the “Convertible Election Notes”), which portion can be any amount up to the full amount of the Allowed Convertible Note Claim, will be treated under the Plan as an Allowed AMR Equity Interest in AMR Class 5 in an amount that corresponds to the number of shares of AMR Common Stock that would have been issued upon conversion of the Convertible Election Notes, as calculated pursuant the Plan as described in the Election Instructions.

 

For these purposes, the deemed Conversion Rate (as applicable, the “Conversion Rate”):

 

for the 6.25% Convertible Senior Notes due 2014 (CUSIP # 001765BC9) will be 109.5784 shares of AMR Common Stock per $1,000 of principal amount thereof; and
for the 4.5% Convertible Notes due 2024 (CUSIP # 001765BB1) will be 47.8155 shares of AMR Common Stock per $1,000 of principal amount thereof.

 
The deadline for making elections to have Convertible Note Claims treated as Allowed AMR Equity Interests in AMR Class 5 is 5:00 P.M., New York City Time, on Friday, November 29, 2013, unless extended by AMR.

 

Capitalized terms used but not otherwise defined herein shall have the meanings given to them in the Plan and the Election Instructions.

 

Source:- American Airlines

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