American Airlines Inc. and parent AMR Corp. asked a bankruptcy court Thursday to allow American to reject a series of facilities agreements with Dallas/Fort Worth International Airport and Alliance Airport.

To be clear: American didn’t ask to abandon its airport leases, which are covered by separate agreements.

It just wants its obligations from these facilities agreements to be considered unsecured debt.

In addition, these are bonds owned by investors, not money owed to the Dallas/Fort Worth Airport — although it hurts the airport if future buyers of such debt steer clear of the D/FW bond issues.

The step was taken to make sure that the $1 billion-plus still owed on the D/FW and Alliance revenue bonds will be considered as unsecured debt, American said in the filing.

The debt is in the form of revenue bonds that American is obligated to repay. American said the action involves $407 million in Alliance-related debt and $632 million in D/FW-related debt.

American has seven agreements with the Dallas/Fort Worth International Airport Facility Improvement Corp. to pay for improvements at that airport, for revenue bonds issued in 1995, 1999, 2000 and 2002, with four issued in 2000.

It also involves two agreements and bond issues with the AllianceAirport Authority Inc. from 1991 and 2007.

The motion is to be heard March 22 before U.S. Bankruptcy Judge Sean Lane in New York.

We got a call Wednesday from a reader who owned some Alliance bonds that were to be paid off on Dec. 1, 2011 — two days after American and AMR filed for bankruptcy.

American has not indicated plans to make changes at D/FW Airport. However, it announced plans to close its maintenance base at Alliance, although it would continue its joint venture with Rolls Royce to maintain engines at American’s Alliance facility.

For the list of bond issues/facilities agreements covered by Thursday’s filing, keep reading.

AllianceAirport Authority, Inc. Special Facilities Revenue Bonds, Series 1991 (American Airlines, Inc. Project)

AllianceAirport Authority, Inc. Special Facilities Revenue Refunding Bonds, Series 2007 (American Airlines, Inc. Project)

Dallas/Fort Worth International Airport Facility Improvement Corporation, SERIES 2000A,

Dallas-Fort Worth International Airport Facility Improvement Corporation American Airlines, Inc. Revenue Bonds, Series 1995

Dallas-Fort Worth International Airport Facility Improvement Corporation American Airlines, Inc. Revenue Bonds, Series 1999

Dallas-Fort Worth International Airport Facility Improvement Corporation American Airlines, Inc. Revenue Refunding Bonds, Series 2000A

Dallas-Fort Worth International Airport Facility Improvement Corporation American Airlines, Inc. Revenue Refunding Bonds, Series 2000B

Dallas-Fort Worth International Airport Facility Improvement Corporation American Airlines, Inc. Revenue Refunding Bonds, Series 2000C

Dallas-Fort Worth International Airport Facility Improvement Corporation American Airlines, Inc. Revenue Bonds, Series 2002

Dallas-Fort Worth International Airport Facility Improvement Corporation American Airlines, Inc. Revenue Refunding Bonds, Series 2007

Resources
Post Your Resume to 65+ Job Sites
Resume Service

Post to Twitter Tweet This Post