AMR Corp. isn’t willing to hold up refinancing $1.32 billion in aircraft bonds unless bondholders provide a bond or the equivalent insuring the parent of American Airlines Inc. won’t sustain a loss if interest rates rise in the meantime.
U.S. Bank NA, the indenture trustee for the bondholders, is appealing from a Jan. 17 opinion by the bankruptcy judge saying the debt can be repaid ahead of maturity without payment of a so-called make-whole premium. AMR is intent on refinancing to save $200 million by issuing $1.5 billion in new aircraft bonds at today’s lower interest rates.
