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November 04, 2013

If you had invested $1,000 in American's stock the day it filed for bankruptcy, you'd have $37,846.15

When American Airlines' parent company filed for bankruptcy almost two years ago, the stock plummeted.

Investors calculated that the stock would be worthless after the airline went through a court-ordered restructuring as is often the case in bankruptcies.

But if you had taken $1,000 and bought shares of AMR Corp. on November 29, 2011 when it was 26 cents a share and held on to them until today, you'd be sitting on a much bigger pile of cash. In fact, a $1,000 investment in AMR would be worth $37,846.15.

A significant part of that gain came on Monday when Attorney General Eric Holder made comments that the government was in settlement talks with American and its merger partner, US Airways. The U.S. Department of Justice had filed an antitrust lawsuit to stop the merger in August, but as the trial date of November 25 nears, a settlement may be in the offing.

With Holder's comments, the stock shot up almost 25 percent on Monday, closing at $9.84. Shares of AMR [ticker: AAMRQ] are traded in over-the-counter markets as the stock was unable to maintain listing requirements for the New York Stock Exchange after it filed for bankruptcy.

-Andrea Ahles

 

 

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Comments

life realist

wow!
so if you had the inside scoop, you'd have made a fortune...
It seems all you need is some high priced lawyers and Corporate CEO's who are willing to shake down unions for their own benefit.
After this is over, they're the only ones who'll have benefited.

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