Creditors group backs new board at stand-alone AMR
DALLAS (AP) — A group of creditors say that if American Airlines parent AMR Corp. emerges from bankruptcy as an independent company it should have a new board of directors.
The group represents financial investors that, as of a court filing in September, included J.P. Morgan Chase & Co. and various investment firms that hold bonds issued by AMR, which filed for bankruptcy protection a year ago Thursday.
The informal or ad hoc group is not part of the official unsecured creditors committee in the bankruptcy case, but it is seeking to influence AMR's reorganization.
"Our support for a stand-alone Plan of Reorganization for AMR will be conditioned, among other things, on that Plan providing for the naming of a new Board of Directors," wrote a lawyer for the group, Gerard Uzzi.
The group expects that most members of the new board would have no previous connection to AMR. The new board's duties would include selecting executives to run the company after bankruptcy, Uzzi wrote in a letter to the union for American Airlines pilots.
A spokesman for AMR said the company declined to comment on the letter.
It's not unusual for corporate boards to be reshuffled during bankruptcy, although pressure from creditors is usually applied away from public view. Many things in AMR's bankruptcy case have proven to be unorthodox, including the highly public pursuit of AMR by smaller rival US Airways Group Inc.
If AMR comes out of bankruptcy as an independent company, it is likely to be led by current executives including CEO Thomas W. Horton. If US Airways can persuade AMR creditors to demand a merger, the combined airline might be run by the US Airways team and its CEO, Doug Parker.