AMR Avoids Make-Whole Pay On Secured Notes In 2nd Circ.

Law360, New York (September 12, 2013, 7:40 PM EDT) -- The Second Circuit on Thursday held that AMR Corp. did not obligate itself to pay an additional premium to noteholders when it opted to redeem certain bonds before they matured to secure $1.5 billion in aircraft financing.

A three-judge panel overruled U.S Bank Trust NA’s appeal of a bankruptcy judge’s January order granting the American Airlines Inc. parent its motion for $1.5 billion in financing for the repayment of AMR’s debts from certain prepetition transactions secured by its aircraft. The bank, a loan trustee for the...
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