Two hedge funds that hold some of AMR Corp.'s debt say the parent company of American Airlines is not being "sufficiently transparent" as it restructures in the bankruptcy process.
In a letter sent to AMR chief executive Tom Horton on Thursday, Appaloosa Management and Marathon Asset Management say AMR is providing confidential information to a creditor group, excluding other creditors from the reorganization. The letter was first reported in the Wall Street Journal.
"Allowing a limited group of creditors to influence the debtors’ restructuring process without input from a broader representation of creditors is not only inappropriate, but also risks the loss of value of the debtors’ estates for all of their constituents as a whole," Bloomberg News reported, adding that the letter said The structure of AMR’s reorganization “can only be achieved through a transparent process that engages all major stakeholders, not just parties that have agreed to support an alternative that may be preferred by” the company’s management.
AMR currently has a non-disclosure agreement with US Airways, which wants to merge with American. The Fort Worth company also recently asked U.S. Bankruptcy Judge Sean Lane for a one month extension to file a restructuring plan with the court. A hearing is scheduled for Oct. 30.
UPDATE: American spokesman Mike Trevino issued this statement, "Our objective, through strategic review of all alternatives is appropriately focused solely on creating maximum value for all stakeholders."