“For an investor who bought American shares at their lowest closing price two years ago, the increase of more than 40 times to its current level is the best return over that period of any US listed company with a market value today of at least $300 million, according to a Wall Street Journal analysis of data from FactSet.” From the article:
When American Airlines parent AMR Corp. filed for bankruptcy protection in November 2011, its stock plunged to 20 cents a share and was soon delisted from the New York Stock Exchange. The entire company was valued at less than $90 million—less than the typical list price of a new passenger jet. Today, as American prepares to close a merger with US Airways Group Inc., the stock trades at just below $11, and a small group of investors who bet on it when it was flying low are poised to reap one of the biggest bankruptcy windfalls in years. That is thanks in part to a little-noticed quirk in the deal that means their holdings could translate into much larger stakes than previously expected in the combined airline, to be called American Airlines Group Inc.
Of course, this is not the norm and creditors usually don’t enjoy such financial recoveries in large bankruptcy cases, let alone get fully repaid with interest. In any case, quite the interesting story, check out the full article here.
The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.