Chapter 11
 

Hey maybe B6 with 1.17B in cash will buy AMR with a current market cap of 1.14B. And that market cap will only get worse in bankruptcy before it gets better. That would make the SWA/AT SLI thread look like a children's book.

By the way, just kidding and I hope for all the AMR folks that this (Chapter 11) does not happen. Good Luck to all, and hopefully you will achieve the industry leading contract to benefit the entire profession.

Chapter 11 is a very real possibility, given AMR's huge losses each quarter/year.

Yep - and bankruptcy and INDUSTRY LEADING CONTRACT mix about as well as oil and water.

How can AMR make a case in bankruptcy court that it can't pay its bills with $5 billion in cash?

Buying 400 airplanes does wonders for that little cash "problem"

Does anyone think those planes were actually ordered with the plan for them to actually show up?

Your question is simple, but the answer is much more complex than your question implies.

Without writing 50 pages, it centers on the fundamental difference between a Chapter 7 bankruptcy (liquidation) where most cash is used and most assets are sold in a non-operating liquidation, to a Chapter 11 bankruptcy (reorganization) where an operating company seeks creditor relief to reorganize. In either chapter, the creditor focus is different.

Does anyone think that the planes were ordered and will NEVER show up?

BK at AMR is pretty much a given. It's just a matter of when. AMR will simply play a repeat of 2003... "sign this POS contract or it's BK" - except that this time, the pilots will tell them to pound sand.

Its happened before. Alaska was the launch customer for the MD-90. Not one ever made it to the ramp.

Yep. I mentioned that a few months ago when they ordered. It's more of a airframe hedge and a place to hide cash than a fleet renewal plan. They'll probably take delivery of less than half of their total orders+options.