Haven't Heard About the Extra 4% in Equity to be Held Aside?

[MetalMover]

I'm sorry. I was merely under the impression that you didn't want your shares and was trying to give you an option of what to do with them. I guess my impression was wrong then.

 I do not want company stock whether it be considered compensation or anything else.....I would always prefer an increase in pay instead of any lump sum payout or stock distribution.

 

[bob@las-AA]

 I do not want company stock whether it be considered compensation or anything else.....I would always prefer an increase in pay instead of any lump sum payout or stock distribution.

Then kindly give your shares to the junior members, or host one hell of a party with a open bar.

 

[MetalMover]

 
Then kindly give your shares to the junior members, or host one hell of a party with a open bar.
 

Maybe you're happy with the distribution method determined by the TWU...I'm not.

 

[WeAAsles]

I do not want company stock whether it be considered compensation or anything else.....I would always prefer an increase in pay instead of any lump sum payout or stock distribution.

Giving equity as part of the reorganization process is how it works. Your losses are hopefully compensated for again as investors drive up the price of the shares. Again the value is when you cash it in. It was a bankruptcy. The company does not compensate it's creditors with cash under those scenarios.

If you honestly don't want the investment in AAL you can do whatever you want with it. Sell the shares and pocket the proceeds or invest in something you have more faith in?

 

[MetalMover]

Giving equity as part of the reorganization process is how it works. Your losses are hopefully compensated for again as investors drive up the price of the shares. Again the value is when you cash it in. It was a bankruptcy. The company does not compensate it's creditors with cash under those scenarios.

If you honestly don't want the investment in AAL you can do whatever you want with it. Sell the shares and pocket the proceeds or invest in something you have more faith in?

If you think this equity makes up for what I lost in my pension alone, you are sadly mistaken. Never mind what I lost in vacation time, holidays and holiday pay and loss of retiree medical which increased my retirement date by five years....
What I lost since the 2003 concessions, they would have to give me thousands of shares of stock to compensate me.

 

[WeAAsles]

If you think this equity makes up for what I lost in my pension alone, you are sadly mistaken. Never mind what I lost in vacation time, holidays and holiday pay and loss of retiree medical which increased my retirement date by five years....
What I lost since the 2003 concessions, they would have to give me thousands of shares of stock to compensate me.

They would have to give all of us thousands of shares. But none of us seem to fight against the issues that make the worker get the hardest screw in the BK. The actual laws themselves that are against us. It seems too many people find much easier and wrong targets to go after instead, IMO.

 

[dfw gen]

why am i getting that feeling that im about to get screwed.....

 

[RJcasualty]

 
 
American Airlines Group Inc. AAL +0.56%  distributed the last big chunk of its payout to 
its bankrupt predecessor's shareholders, delivering them a windfall that was even more enormous than previously expected.
 
Tuesday's payout was based on a formula that awards shares in the new American to its predecessor's holders based in part on the new company's stock performance. As those shares have soared, some who bought stock in the predecessor eight months ago have earned a return of 13 times their investment. Anyone who held those shares from their low point in late 2011 has had their value grow 135 times.
 
The new American was formed by the December merger between US Airways Group Inc. and American's predecessor company, AMR Corp., which entered bankruptcy in November 2011. That month, its shares plunged as low as 20 cents each, valuing the company at around $90 million.
 
Even before the deal closed on Dec. 9, it appeared likely to be a bonanza for investors who gambled on AMR stock as bankruptcy-related cost cutting, merger synergies and an overall improvement in the airline industry boosted American's prospects. But the new company's stock has surged more than expected: It ended trading Tuesday at $35.98, up 46% since it opened.
Enlarge Image 
 
 
As a result, American said, one share in the former AMR has ended up having a value of almost $27 based on the current American stock price, and AMR shareholders now own about two-fifths of the new American Airlines, a total stake valued at nearly $11 billion.
 
 Brett Kramer, chief investment officer at Pinnacle Investment Advisors of Tulsa, Okla., invested $50,000 in AMR in February 2013. That stake was valued at just over $400,000 in early December and has since risen to more than $1 million. "I'll take that any day," he said, adding that he still plans to hold his shares.
 
Creditors in AMR have also been repaid in full as part of the American merger, offering a solid payout as well to anyone who bought American's debt at a discount.
 
 Kevin Starke, managing director at broker-dealer CRT Capital Group LLC, said that among distressed investments, AMR "was one of the best of all time, no doubt."
 
He added that while a few investors acquired AMR shares for less than $1 in the first year after the bankruptcy, many of the big winners bought more recently. After the Justice Department sued to block the merger on antitrust grounds in August, AMR's shares fell as low as $2.06 apiece, and they hovered below $7 for the next two months until shortly before the government settled with the airlines in November. Many investors took advantage of that opportunity, he said.
 
Mr. Starke credited the rich payout in part to the unusual equity-distribution model the airlines and AMR's creditors agreed on for the merger.
 
Under the model, US Airways shareholders received 28% of the combined company, while AMR shareholders were guaranteed at least 3.5%—with room for much more depending on the new company's stock price.
 
The more than $7 billion owed to AMR's creditors, labor unions and management was to be repaid in full if the new company's stock price held above $16 in the first 120 days after the merger's close. Under the $16 scenario, those AMR creditors would have owned almost two-thirds of the new company and AMR shareholders would have owned less than 7%.
 
But the surge in American's share price has given the former AMR shareholders nearly 40% of the company, diluting the AMR creditors' share to less than a third.
 
The big payday probably isn't over. American has about $750 million set aside for disputed creditor claims. The company said it expects to win more than $500 million of those claims and return that money to the AMR shareholders, boosting their share to about 42%, based on the current stock price.
 
Separately on Tuesday, American said it would adopt the policy of US Airways and start charging fliers to check a bag to many Latin American destinations, one of the biggest recent steps by a U.S. carrier to add bag fees for international travel.
 
American said it would charge fliers $25 for a first checked bag for flights to Mexico, the Caribbean and Central America. It previously allowed one free checked bag per passenger on those flights. Most U.S. airlines generally charge first-bag fees for travel within the U.S. and to Canada on their most basic economy tickets. But such fees have typically been less routine on longer international flights.
 
Write to  Jack Nicas at [email protected]

 

[BigMac]

Day 120 Equity Distribution
In preparation for the distribution, the ''Employee Grants and Awards'' section of Computershare accounts will be unavailable beginning April 8, though existing shares under the ''Employee Plan Stock'' section may continue to be sold and transferred until April 9 at 3 p.m. CDT. After that time, both sections and the call centers ability to transact via phone will be unavailable. Both sections will be available again on April 10 at 8:30 a.m. CDT.

 

[BigMac]

56 shares ...
Less than 1/4 of the Dec 9th, 2013 shares.
And there you have it.

 

[bob@las-AA]

Yep! Thats all she wrote!

 

[iluvaa]

Take home was 252 shares day one 42 shares day 120. Wow I feel made whole now

 

[Gman10]

Shenanigans!!!!

 

[AANYER]

Wow, have you heard, the TWU has stolen at least 12% of this distribution. I first received 247 shares on the initial distribution. However, I only received 41 shares on this distribution. Not the 28% of the initial distribution as indicated by AA. The 41 shares equated to a minuscule 16.5%. We thought the TWU was going to steal the equity shares from us and now they actually did.

Please for the life of us, let's get rid of these terrible leeches. This is communism at its core. We need democracy now. There are people dying for right to freely choose their representatives all over the world. You must ask yourselves, why do I choose communism. People free your mind, free your soul from this evil. Let's choose AMFA.

AMFA now more than ever, 26 years of the TWU is too much to bare.

 

[DallasConehead]

Be grateful for it.