AMR Bondholders Urges Board Changes

Group says its support for a standalone airline post-bankruptcy depends on new directors.

A group of AMR Corp. bondholders with about $885 million in debt has told pilots that its support for a stand-alone American Airlines after bankruptcy would be conditioned on the appointment of a new board.

The debt owners detailed that stance in a letter to Allied Pilots Association President Keith Wilson that was posted on a portion of the union website yesterday. According to a September court filing, the group included JPMorgan Chase & Co. and Pentwater Capital Management LP.

‘Written Commitment’

“This letter provides APA with the benefit of a written commitment by the ad hoc group stating it will not agree to a plan of reorganization that does not otherwise include a new independent AMR board of directors and that key stakeholders, including labor, will be a part of that selection process,” the union told its members.

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