Bondholders Suggest $AMR’s Board Should Be Replaced

“NEW YORK (Reuters) – A group of some of bankrupt American Airlines’ most significantbondholders said it will not support a standalone restructuring unless a new board is brought in, a move that may increase hurdles for Chief Executive Tom Horton and his team.

The 12-member bondholder group, which includes JPMorgan Chase & Co , Pentwater Capital Management and York Capital Management, is the primary well-organized group to have expressed an interest in funding an independent exit for the airline’s parent company AMR Corp.

AMR filed for bankruptcy in November 2011, seeking to reduce labor costs.

Entities that gain a controlling equity stake in a company through bankruptcy routinely appoint new boards, and those boards do not necessarily oust the company’s incumbent managers.”

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