American Airlines completes final mandatory conversion of preferreds

By Marisa Wong

Madison, Wis., April 8 - American Airlines Group Inc. gave notice to holders of its series A convertible preferred stock that the remaining 17,230,082 shares of preferred stock will be converted into shares of common stock as of the close of business on April 8.

According to a press release, the conversion price used for determining the number of issuable shares is $33.8080.

For each $1,000 of convertible preferreds mandatorily converted, holders will receive 29.5788 common shares. In other words, each preferred will be mandatorily converted into 0.7549 common shares.

Additional distributions

In addition to announcing the final mandatory conversion, the company announced some common stock distributions.

Under the company's fourth amended joint plan of reorganization, holders of AMR Corp. common stock will receive a distribution of roughly 0.1864 shares of American Airlines stock on April 10.

Holders of AMR's 6.25% convertible senior notes due 2014 who elected to be treated as if they held AMR common stock are to receive 20.4245 shares of American Airlines for each $1,000 principal amount of notes on April 10.

Holders of AMR's 4.5% convertible senior notes due 2024 who elected to be treated as if they held AMR common stock are to receive 9 shares of American Airlines for each $1,000 principal amount of notes on April 10.

Under the plan, about 41,514,400 shares, including the disputed claims reserve, will be distributed on April 10 to satisfy the single-dip non-preferred allocation. This distribution will be the final distribution to satisfy single-dip claims.

The disputed claims reserve will contain a total of about 30,405,200 shares. Allowed claims will receive 30.7553 shares, subject to reduction for expenses of the disputed claims reserve, including tax liabilities, for each $1,000 of allowed claims.

Also under the plan, 11,662,800 shares are being distributed as part of the labor common stock allocation.

The American Airlines holding company is based in Fort Worth.

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