Originally Posted by
B767
Can someone please explain, in Layman's terms, why the divestiture is better for the shareholders. AMR stock is a whopping $3.32. Now the shareholders will get stock in a, pretty much, worthless public company. How will they make money off the divestiture? Add to that that AMR will keep AE debt, which will lower the stock price. We can't be the only ones thinking AMR will file ch 11.
Once they file BK the share holders are the last to get paid if any money is left when they auction off all the assets. The creditors are 1st to get paid, then the bond holders, and last the share holders. Which is why you are seeing a lot of guys putting in for early retirement. Once they file BK the stock becomes worthless and the employees and all AMR stock holders who own the stock loose all their money.