AMR Stock Trading

[Buck]

Uh, no.

The court can't legally treat one set of shareholders differently from another. Had the options never traded above the strike price, maybe, but you had over five years to do something with the shares, and they did trade for quite some time in positive territory. I sold mine in 2006 for a profit, along with some other options I had at $20 a share that were issued in 2001 and didn't vest until 2003...

Even if it were possible, if the court treated the employee who didn't exercise their shares with preference, there'd be just as much justification to have the shares and options held by Arpey, Horton, etc. reissued as well...

I understand, my questioning is because when issued, the Negotiated shares were to be exercised by 2013. I was looking at this as part of the unsecured debt and that TWU is on the Creditors Committee.

 

[BoeingBoy]

Stock options, to a greater degree than actual shares, carry no guarantee of future value so there is no basis for an unsecured creditor claim. Actual shareholders, who own the corporation, rarely receive any value for their shares in bankruptcy so why should those who hold only the option to become shareholders (owners) expect any more consideration in bankruptcy?

Jim

 

[Kellerguy]

Yes and if we get a new 401k match instead of a pension,you can bet AA will match with stock... How much will that be worth if AA goes in BK again say if Iran starts a conflict and fuel goes to 200 a barrel...You will get nothing.... just like the options.

Uh I don't think so. That would defeat the whole purpose of the 401K match portability concept. They are two totally different concepts altogether. This is not to say that various work groups would not also negotiate for stock options. They are a higher risk, higher reward proposition. Many AAers sold their $5 options above $20, making a huge windfall. Considering the probability AA will want to have an IPO again to recapitalize coming out of bankruptcy, it could be a terrific option.

 

[eolesen]

I understand, my questioning is because when issued, the Negotiated shares were to be exercised by 2013. I was looking at this as part of the unsecured debt and that TWU is on the Creditors Committee.

I know where you're coming from, but it is no more unsecured debt than it is to file an overtime bypass grievance if you weren't on the overtime list to begin with. That's one of the challenges with variable compensation -- there's no guarantee that you'll get any value unless you act, and do so at the right time. The upside can be huge. And it can also be zero.

 

[FWAAA]

I understand, my questioning is because when issued, the Negotiated shares were to be exercised by 2013. I was looking at this as part of the unsecured debt and that TWU is on the Creditors Committee.

As others have said, underwater (worthless) stock options are not debt, whether they're Arpey's options or yours. Both are worthless and entitled to nothing in the bankruptcy.