AMR Corp. (AMR) Draws Ire from This 'Lavish' Investment

December 14, 2011 10:32 AM EST Send to a Friend
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AMR Corp. (NYSE: AMR) knows how to do it right!

Reuters is reporting that one investment by AMR is catching the ire of employees and investors. In the early 1990s, AMR splurged to buy a residence in the Cottesmore Gardens district of London.

Disclosed as "London Residence LON6526" in its bankruptcy filings, the property is currently valued at $30 million. Purchase price of the house wasn't reported, but AMR said the value of the property was "much lower" when purchased. Based on a recent survey, Cottesmore Gardens is the 10th most expensive address in the U.K.

Should people and unions be making a hoopla about the residence? AMR's filing was for relief from $30 billion of liabilities, making the $30 million seem like chump change. Also, its was bought at a discount, meaning the residence worked in AMRs favor.

With AMR aiming to better position itself not only in the industry, but also with investors, it might be one item they aim to sell. And quick.

Shares are 10.8 percent better Wednesday.


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