Report Raises American Airlines Ch. 11 Fears

Law360, New York (October 21, 2011, 6:16 PM EDT) -- A financial industry analyst warned Friday that American Airlines parent AMR Corp. would be forced into bankruptcy if it didn't get help from lenders or scare up huge amounts of cash quickly, leading investors to sell off company stock in droves.

The report, from Morningstar analyst Basili Alukos, came just two days after Fort Worth, Texas-based American Airlines announced it had lost $162 million for the third quarter of 2011 and was implementing major cost-cutting measures.

But Alukos said those moves may not be enough. With...
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