AMR CEO, creditors to meet for restructuring update-sources

NEW YORK, Tue Aug 14, 2012 – AMR Corp. CEO Tom Horton is to meet creditors on Tuesday and provide an update on labor talks after pilots rejected a contract offer from the bankrupt parent of American Airlines last week, according to people familiar with the matter.

Horton and other senior executives are also expected to discuss American’s financial and operational performance, negotiations with its trade vendors and its ongoing review of potential mergers at a regularly scheduled monthly meeting with the airline’s unsecured creditors committee Tuesday, one of the people said.

American management led by Horton has met with creditors monthly to brief the group on different elements of bankruptcy restructuring. Labor uncertainty created by the pilots’ rejection of a new contract offer is likely to be one of the major topics this month.

The people asked not to be named because the matter is not public. American declined to comment, as did a lawyer for its creditors’ committee.

The meeting in New York comes a day before Judge Sean Lane, who oversees American’s bankruptcy, is slated to rule on whether the third-largest U.S. carrier can abandon its current labor contract and unilaterally impose temporary work terms while the two sides continue to negotiate a long-term pact.

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