Market Overview

Unions Prepare For Fight Over American Airlines


American Airlines Group Inc (NASDAQ: AAL) may have another tough time involving the bankruptcy case of an American Airlines Group Inc. predecessor, AMR Corporation (NYSE: AAR). AMR's union workers are claiming that they are in danger of being treated unfairly, while the company's shareholders receive another generous payoff, The Wall Street Journal reported.

In 2011, over hundreds of millions of dollars of stock remains stored in bankruptcy reserve accounts. The stock is awaiting a final settlement of American Airline's accounts from the 2011 bankruptcy of its parent company, AMR.

Investors in the old equity received more than $9.5 billion of new American shares in the four months following AMR's bankruptcy exit, according to court papers.

The Allied Pilots Association, the Association of Professional Flight Attendants and the Transport Workers Union of America AFL-CIO are getting ready to wrestle American over the stock on behalf of employees. The unions say they are being asked to take less now than they received in earlier rounds of distributions, while "professional investors" that gambled on AMR's stock and won get even richer.

Shares of American Airlines recently traded at $42.23, up 2.77 percent.

Posted-In: Wall Street JournalNews Dividends Legal Media Trading Ideas


Related Articles (AAR + AAL)

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