AMR wants to keep control over bankruptcy through March 11

Updated 02 December 2012
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AMR wants to keep control over bankruptcy through March 11

NEW YORK: American Airlines' bankrupt parent has asked a judge to extend by six weeks, through March 11, the period in which it has the exclusive right to propose a plan to exit bankruptcy.
The request, made jointly with its creditors' committee, was filed on Friday in US Bankruptcy Court in Manhattan. The current exclusive window is set to end on Jan. 28.
AMR Corp. filed for bankruptcy a year ago in hopes of reducing labor costs and returning to profitability.
Its smaller competitor, US Airways Group Inc., is making a push to acquire it out of bankruptcy. AMR said earlier this year it would prefer to exit as a standalone company, but is discussing merger options, including with US Airways.
Friday's filing is a sign that discussions with creditors on how to bring AMR out of bankruptcy are progressing cooperatively, if a bit slower than initially expected.
"American and the (creditors' committee) believe that the proposed extensions will facilitate the expedition of the chapter 11 cases and benefit all parties in interest," the filing said.
Sean Collins, a spokesman for American, said in a statement that the company "has made significant progress in its restructuring."
"The work, while progressing well, takes time," he said.
The exclusivity period bars creditors and other parties from proposing their own plans for how AMR should exit bankruptcy.
That effectively blocks US Airways from making a hostile bid, as any merger plan unveiled during exclusivity would have to be proposed by AMR itself.
AMR's pilots union, in the midst of bitter contract talks with the company, supports a US Airways merger and called Friday's extension request a sign that "things are proceeding in a positive way."
"We assume that the strategic alternative talks, which include US Airways, are functional," union spokesman Dennis Tajer said.
A hearing on the extension request is set for Dec. 19.
The case is In re AMR Corp et al, US Bankruptcy Court, Southern District of New York, No. 11-15463.


‘Get prices down’ Trump tells OPEC

Updated 20 September 2018
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‘Get prices down’ Trump tells OPEC

  • Trump highlights US security role in region
  • Comments come ahead of oil producers meeting in Algeria

LONDON: US president Donald Trump urged OPEC to lower crude prices on Thursday while reminding Mideast oil exporters of US security support.
He made his remarks on Twitter ahead of a keenly awaited meeting of OPEC countries and its allies in Algiers this weekend as pressure mounts on them to prevent a spike in prices caused by the reimposition of oil sanctions on Iran.
“We protect the countries of the Middle East, they would not be safe for very long without us, and yet they continue to push for higher and higher oil prices!” he tweeted.
“We will remember. The OPEC monopoly must get prices down now!”
Despite the threat, the group and its allies are unlikely to agree to an official increase in output, Reuters reported on Thursday, citing OPEC sources.
In June they agreed to increase production by about one million barrels per day (bpd). That decision was was spurred by a recovery in oil prices, in part caused by OPEC and its partners agreeing to lower production since 2017.
Known as OPEC+, the group of oil producers which includes Russia are due to meet on Sunday in Algiers to look at how to allocate the additional one million bpd within its quote a framework.
OPEC sources told Reuters that there was no immediate plan for any official action as such a move would require OPEC to hold what it calls an extraordinary meeting, which is not on the table.
Oil prices slipped after Trumps remarks, with Brent crude shedding 40 cents to $79 a barrel in early afternoon trade in London while US light crude was unchanged at about $71.12.
Brent had been trading at around $80 on expectations that global supplies would come under pressure from the introduction of US sanctions on Iranian crude exports on Nov. 4.
Some countries has already started to halt imports from Tehran ahead of that deadline, leading analysts to speculate about how much spare capacity there is in the Middle East to compensate for the loss of Iranian exports as well as how much of that spare capacity can be easily brought online after years of under-investment in the industry.
Analysts expect oil to trend higher and through the $80 barrier as the deadline for US sanctions approaches.
“Brent is definitely fighting the $80 line, wanting to break above,” said SEB Markets chief commodities analyst Bjarne Schieldrop, Reuters reported. “But this is likely going to break very soon.”