Kirby J Scott Sells 91.1K Shares and 3 Insider Sales to Follow

[signals]

You really need to brush up on the facts here... Im not seeing the drop you refer to either... Alarming rate?

After a drop below $14, a recovery if you can call it that.


http://www.google.com/finance?q=NYSE%3ALCC&ei=UpARUai2L8n50gGq-AE#

 

[signals]

When will the 'new' stock be put on the stock market and what will be the new symbol? US is gone and AMR, I assume, is no longer the parent company. Would the new ticker be AA?

 

[700UW]

When the merger closes.

 

[signals]

Both US and AAMRQ stocks are rising. AA stock is now over $4! Is this stock still worthles or will stockholders get something when the merger closes.

 

[700UW]

The stock will be canceled and they get nothing for it.

 

[UPNAWAY]

Actually not true (Usually it is) but in this case current AMR share holders will get 3.5% in the new company.

 

[FWAAA]

Actually not true (Usually it is) but in this case current AMR share holders will get 3.5% in the new company.

Exactly. It's unprecedented in legacy airline bankruptcies that the unsecured creditors will be paid in full (in new stock) and thus, the existing old common stock will receive a payout, in this case 3.5% of the 72% (the AA creditor/claimant share of the new combined airline).

That the unsecured creditors will be paid in full is some evidence that AA didn't cut enough debt. Obviously, had AA terminated the pensions (instead of agreeing to simply freeze all of them), there would be billions more in claims from the PBGC, and creditors would be paid a fraction of their claims. In this case, however, the PBGC has no claims, as AA is not terminating the pensions (meaning higher costs going forward as it satisfies those frozen pensions).

 

[usa1]

The US Airways half of the company has no frozen pension. How much is that worth to the new AMR? :angry2: