AMR Corporation (AAMRQ) Equity May Have Value

January 8, 2013 4:45 PM EST
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In an SEC filing, AMR Corporation's (OTC: AAMRQ) counsel discloses there exists a reasonable possibility that there may be value for AMR equity holders consistent with the absolute priority rule.

Brian S. Masumoto, Esq.
Trial Attorney
U.S. Department of Justice
Office of the United States Trustee
Southern District of New York
33 Whitehall Street
New York, New York 10004
In re AMR Corporation, et al. - Case No. 11-15463 (SHL)
Dear Mr. Masumoto:

Reference is made to our letters dated December 20, 2011 and January 10, 2012, respectively. Those letters were responsive to inquiries made by your office as to the request made by a shareholder of record of AMR Corporation (Mr. Simon Mark Tabashnick) for the appointment of an equity committee in the pending chapter 11 cases. Reference also is made to related correspondence concerning the shareholder request from Skadden Arps Slate Meagher & Flom LLP, as attorneys for the Official Committee of Unsecured Creditors of AMR, et al. (UCC). On behalf of the Debtors, our letters opposed the appointment of an equity committee on the primary ground that there did not appear to be a substantial likelihood that [equity holders of AMR] would receive any meaningful distribution in the chapter 11 cases under a strict application of the absolute priority rule. In addition, we noted that equity holders appeared able to adequately represent their interests in the chapter 11 cases without an official statutory committee.

Since January of 2012, the Debtors have made remarkable progress in stabilizing their businesses and improving their prospects. As you know from media reports, the Debtors, the UCC and others are currently in the process of exploring strategic alternatives to effectuate the reorganization of the Debtors, as contemplated by the provisions of chapter 11 of the Bankruptcy Code. In that connection, it appears that the value of the Debtors has significantly appreciated. Depending upon the ultimate strategic alternative adopted and pursued, there exists a reasonable possibility that there may be value for AMR equity holders consistent with the absolute priority rule.

Accordingly, and in the interests of full transparency, we have concluded that it is appropriate to advise you of the change in circumstances concerning the potential economic interests of AMR equity holders.

Should you have any questions concerning the above, please do not hesitate to contact us.

Harvey R. Miller
/s/ Harvey R. Miller
Via Electronic Mail
John W. Butler, Esq.
Tracy Hope Davis, Esq.
Jay M. Goffman, Esq.
Stephen Karotkin, Esq.
Gary F. Kennedy, Esq.
Kathryn L. Koorenny, Esq.
Alfredo Perez, Esq.
Mr. Simon Mark Tabashnick

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