AMR announces conversion rate for 6.25%, 4.5% convertible noteholders

By Caroline Salls

Pittsburgh, Nov. 27 - AMR Corp. announced the applicable conversion rate for holders of its 6.25% convertible senior notes due 2014 and 4.5% convertible notes due 2024, according to a company news release.

The deemed conversion rate for the 6.25% notes will be 109.5784 shares of AMR common stock per $1,000 principal amount of notes, and the rate for the 4.5% notes will be 47.8155 shares of AMR common stock per $1,000 principal amount.

Under AMR's plan of reorganization, any holder of an allowed convertible note claim can irrevocably elect to have all or any portion of its claim treated under the plan as an allowed equity interest as a result of a deemed conversion of the notes.

Assuming a plan effective date of Dec. 9, if a valid conversion election is made, the notes underlying the portion of the claim to which the conversion election is made will be treated as an AMR equity interest in an amount that corresponds to the number of shares of AMR common stock that would have been issued upon conversion of the election notes.

The deadline for making elections to have convertible note claims treated as equity interests is 5 p.m. ET on Nov. 29.

AMR Corp., the Fort Worth-based parent of American Airlines, filed for bankruptcy on Nov. 29, 2011 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 11-15463.

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