The stock in AMR Corp. may not be worthless after all.
In a letter dated Jan. 3, AMR's lead counsel Harvey Miller told a Department of Justice attorney that American Airlines' parent company has made "remarkable progress" and that the value of the carrier has "significantly appreciated."
"Since January of 2012, the Debtors have made remarkable progress in stabilizing their businesses and improving their prospects. As you know from media reports, the Debtors, the UCC and others are currently in the process of exploring strategic alternatives to effectuate the reorganization of the Debtors, as contemplated by the provisions of chapter 11 of the Bankruptcy Code.
"In that connection, it appears that the value of the Debtors has significantly appreciated. Depending upon the ultimate strategic alternative adopted and pursued, there exists a reasonable possibility that there may be value for AMR equity holders consistent with the absolute priority rule," Miller wrote.
The letter was in response to a shareholder request to create an equity committee as part of the bankruptcy process.
AMR, US Airways, the airlines' unions and the unsecured creditors committee have been meeting to discuss a possible merger while AMR is in bankruptcy. The AMR board is scheduled to meet on Wednesday although it is not expected to make any formal decisions on a possible merger.