Last night AMR filled the 1110(b) extension, as we have talked about AMR had until today Jan 27th to reject or comply with the leases on the aircraft (60 days). For this extension to be granted the Creditor and AMR have to agree to continue in negotiations, this extension is for 30 days but it will self extend every 30 days as long as AMR and the creditors have agreed to it. Don't read to much into this as AMR has done this with most of the AA and AE fleet. AMR doesn't have DIP financing, they are calling the shots (don't have someone who is financing their CH11 telling them to hurry up) and have the first right at restructuring the corporation for the next 14 months.

*11109(b) Extension: Under §1110 of the United States Bankruptcy Code, which was enacted after the last major round of airline bankruptcies in the early 1990s, aircraft lessors were given the right to repossess their aircraft from bankrupt airlines if the leases were not brought current within 60 days, unless the deadline is ex- tended by mutual agreement (under §1110(b) of the Bankruptcy Code).

*Dip Financing Debtor-in-possession financing or DIP financing is a special form of financing provided for companies in financial distress or under Chapter 11 bankruptcy process. Usually, this security is more senior than debt, equity, and any other securities issued by a company. It gives a troubled company a new start, albeit under strict conditions.