Some AMR bondholders say American not taking care of planes
[font=Trebuchet MS']Some creditors of American Airlines say the airline isn't keeping up with the needed maintenance work on the airplanes that are the collateral for their bonds, Reuters reports.
The bondholders' agent, U.S. Bank, is expected to argue at a Thursday hearing in U.S. Bankruptcy Court in Manhattan that the airline unit of AMR Corp has neglected its planes, and failed to make hundreds of repairs.
They fear that this and other costs could force the value of the planes to sink too low to cover the bonds.
The value "will continue to erode as a result of the costs to insure, store, ferry, market and sell the aircraft," U.S. Bank said in court papers.
Most of the planes are older-model aircraft, including Boeing 757s and MD-82s and MD-83s made by McDonnell Douglas. Payment on the bonds is due Oct. 15.
See report here
http://blogs.star-te...-of-planes.html[/font]
[font=Trebuchet MS']Some creditors of American Airlines say the airline isn't keeping up with the needed maintenance work on the airplanes that are the collateral for their bonds, Reuters reports.
The bondholders' agent, U.S. Bank, is expected to argue at a Thursday hearing in U.S. Bankruptcy Court in Manhattan that the airline unit of AMR Corp has neglected its planes, and failed to make hundreds of repairs.
They fear that this and other costs could force the value of the planes to sink too low to cover the bonds.
The value "will continue to erode as a result of the costs to insure, store, ferry, market and sell the aircraft," U.S. Bank said in court papers.
Most of the planes are older-model aircraft, including Boeing 757s and MD-82s and MD-83s made by McDonnell Douglas. Payment on the bonds is due Oct. 15.
See report here
http://blogs.star-te...-of-planes.html[/font]
