Chapter 11 Case Information

Lead Debtor and Case Number:


Filing Date:

In re AMR Corporation, et al.

Case No. 11-15463 (SHL)


November 29, 2011   

Plan Effective Date: December 9, 2013

Court Information:

United States Bankruptcy Court 

Southern District of New York

One Bowling Green

New York, New York 10004-1408

Judge:


Court Docket:

The Honorable Sean H. Lane


http://www.amrcaseinfo.com/maincase.php





Current Messaging


5.13.2016 An Update on Computershare's Annual Service Fee

 

You may recall that when American kicked off the equity distribution process, they shared that Computershare’s annual service fee of $50 per account per year would go into effect 30 months after our first distribution date – which would be June 9, 2016.

 

Because the distribution process is not yet complete, American is working on alternatives regarding this fee. For now, know that annual service fee will be deferred until an agreement on the alternatives is reached.  There will be more to share in the upcoming months.


3.8.2016 Equity Stock Information - Disputed Claims Reserve Distribution


Today, American announced that it would be making a fifth distribution of shares to labor including APFA from the Disputed Claims Reserve.  As has been previously explained on JetNet and on this APFA equity website, during the bankruptcy American contested the validity of a number of claims filed by various entities and individuals. In the event the Bankruptcy Court found any of these claims to be valid, American established a Disputed Claims Reserve (DCR) of stock. We’ve shared before that the majority of U.S.-based legacy American employees are eligible to receive 23.6 percent of the shares of common stock in the new company (AAL) distributed to holders of allowed unsecured claims. The majority of these shares were distributed to eligible employees throughout a 120-day period that began in December 2013. During that period, we let you know there could be small distributions post Day 120 depending upon the resolution of the disputed claims reserve. Before today, there were four distributions - the first on July 1, 2014, the second on November 3 2014, the third on February 10, 2015 and the last on August 10, 2015

As a reminder, as disputed unsecured claims are resolved, additional equity will be distributed to creditors (the Creditor Body), and there will be additional distributions of shares to employees when distributions are made to the Creditor Body. The final reconciliation of the disputed claims reserve is likely to take several years to complete. However, at all measurement points, U.S.-based legacy American’s employee groups will receive 23.6 percent of all shares distributed to the Creditor Body. 

AFPA explained in a Hotline in January 2015 that after the third distribution from the DCR, shares of stock would be distributed at the earlier of when: (1) the number of shares available for distribution is 70,000 or more, or (2) six months from the date of the oldest distribution of shares still held in the Trust other than residual shares. 

  •  The example we gave in the Hotline was: 

Assume that on March 1, 2015, 20,000 more shares are allocated to APFA and deposited in the APFA Trust Account. At that point the Trust would hold 44,355 shares (20,000 + 24,355). Six months from this date would be September 1, 2015.If at any time during this six month period there was a subsequent distribution sufficient to reach the 70,000 share threshold, the shares would be allocated to eligible Flight Attendants. If, instead there were no other distributions during these six months or the distribution was not large enough to reach the 70,000 threshold, the shares, whatever the number, would be distributed to eligible Flight Attendants on September 1. 

On August 10, 2015, APFA distributed 60,728 shares. Following that distribution, there remained 3,161 resulting from the rounding of shares. Today, the Company made a very small distribution of 2,618 shares to APFA bringing the total shares in the Trust to 5,779 shares. Consistent with the criteria explained above, there are not a sufficient number of shares to distribute to eligible Flight Attendants. 


8.10.2015 Equity Stock Information - Disputed Claims Reserve Distribution

As was described in the Hotline of July 16, last month a fourth distribution of shares from the Disputed Claims Reserve was deposited in the APFA Trust Account. On Thursday, August 13 or Friday, August 14, 60,728 shares  from the Trust Account will be distributed to eligible participants with ninety percent of the participants allocated at least one share. As a result of the rounding of shares, 3,161 shares will remain in the Trust Account.

7.14.2015 Equity Stock Information - Disputed Claims Reserve Distribution

Today, American announced that it would be making a fourth distribution of shares to labor including APFA from the Disputed Claims Reserve.  As has been previously explained on JetNet and on the APFA equity website site, http://apfaequity.creditorinfo.com/ during the bankruptcy American contested the validity of a number of claims filed by various entities and individuals. In the event the Bankruptcy Court found any of these claims to be valid, American established a Disputed Claims Reserve (DCR) of stock. We’ve shared before that the majority of U.S.-based legacy American employees are eligible to receive 23.6 percent of the shares of common stock in the new company (AAL) distributed to holders of allowed unsecured claims. The majority of these shares were distributed to eligible employees throughout a 120-day period that began in December 2013. During that period, we let you know there could be small distributions post Day 120 depending upon the resolution of the disputed claims reserve. Before today, there were three distributions - the first on July 1, the second on November 3, and the third on February 10. 

 

As a reminder, as disputed unsecured claims are resolved, additional equity will be distributed to creditors (the Creditor Body), and there will be additional distributions of shares to employees when distributions are made to the Creditor Body. The final reconciliation of the disputed claims reserve is likely to take several years to complete. However, at all measurement points, U.S.-based legacy American’s employee groups will receive 23.6 percent of all shares distributed to the Creditor Body. 

 

APFA explained in a Hotline in January that after the third distribution from the DCR, shares of stock would be distributed at the earlier of when: (1) the number of shares available for distribution is 70,000 or more, or (2) six months from the date of the oldest distribution of shares still held in the Trust other than residual shares. 

  •  The example we gave in the Hotline was: 

Assume that on March 1, 2015, 20,000 more shares are allocated to APFA and deposited in the APFA Trust Account. At that point the Trust would hold 44,355 shares (20,000 + 24,355). Six months from this date would be September 1, 2015.If at any time during this six month period t here was a subsequent distribution sufficient to reach the 70,000 share threshold, the shares would be allocated to eligible Flight Attendants. If, instead there were no other distributions during these six months or the distribution was not large enough to reach the 70,000 threshold, the shares, whatever the number, would be distributed to eligible Flight Attendants on September 1. 

 

In fact, what happened is on February 10, 2015, a third distribution of 22,976 shares from the DCR were allocated to APFA and deposited in the APFA Trust Account. At that point the Trust held 47,331 shares.  Six months from February 10 is August 10. The number of shares in the fourth DCR distribution is 17,931.  Added to those currently held in Trust increases the total to 65,262 (47,331 + 17,931). In addition, at the end of July 1,367 shares will be withdrawn from the Trust Account to cover APFA’s expenses related to the distribution of shares. The number of shares available for distribution is 63,895 (65,262 – 1,367) 

 

It is now clear that during the six-month period of February 10 to August 10 the share count will not exceed 70,000 shares. Accordingly, on August 10 - the end of the six-month period – all shares in the Trust will be allocated to participants. The only exception is residual shares resulting from the rounding of shares.  


2.26.2015 Equity Stock Tax Information

American has published a handy chart showing the Fair Market Value for all six of the Equity Distributions to date. You can find that on Jetnet - https://newjetnet.aa.com/docs/DOC-8195.pdf (Jetnet login required). The Flight Attendant distribution stock values are read from the first chart on that page labeled: “Distributions from Company or Disputed Claims Reserve (DCR).” Also, American has provided other information about the taxation of the Equity Shares that can be found at https://newjetnet.aa.com/docs/DOC-8190

As stated on the Computershare website, the shares were issued as “Restricted Stock Units” (RSUs). To determine your individual tax liability regarding the Equity Shares, you should consult a tax advisor or attorney.

11.17.2014 Dividend Payout

 

A dividend of 10 cents per share will be paid on November 17, 2014 (payout day), to shareholders of record as of market close on November 3, 2014. If you are a holder of AAL common stock as of November 3, you will receive a dividend payout from the broker who holds your shares. And, if you have unvested shares, the dividend will be accrued and paid out to you once your shares vest.

 

Legacy American employees who hold shares with Computershare will receive this dividend from Computershare on the payout day. If you previously entered direct deposit information, the cash dividend will be deposited into your bank account. And, if no banking information is in the system, the payment will be mailed as a check to the address on file in your Computershare account.

 

It’s important to note that the dividend payment is subject to  income tax and for tax purposes will be reported to you on a Form 1099-DIV. To avoid additional backup withholding on this dividend payment, it’s important you certify your W-9 with Computershare, if you have not already done so. Complete instructions for certifying are available on the Equity Hub.

 

Here you can review the Q&As provided by AA.  If you have specific questions please email APFA@creditorinfo.com.


11.04.2014 Disputed Claims Reserve

 

We’ve shared before that the majority of U.S.-based legacy American employees are eligible to receive 23.6 percent of the shares of common stock in the new company (AAL) distributed to holders of allowed unsecured claims. The majority of these shares were distributed to eligible employees throughout a 120-day period that began in December 2013. During that period, we let you know there could be small distributions post Day 120 depending upon the resolution of the disputed claims reserve. And, the first distribution from the Disputed Claims Reserve occurred on July 1.

 

As a reminder, as disputed unsecured claims are resolved, additional equity will be distributed to creditors (the Creditor Body), and there will be additional distributions of shares to employees when distributions are made to the Creditor Body. The final reconciliation of the disputed claims reserve is likely to take several years to complete. However, at all measurement points, U.S.-based legacy American’s employee groups will receive 23.6 percent of all shares distributed to the Creditor Body.

 

There will be a second distribution of approximately 148,000 gross shares (approximately 0.6 percent of the Day 1 distribution) from the Disputed Claims Reserve on Nov. 4. This distribution is smaller than all others based on the amount of claims resolved, and will go into separate employee group trusts to be held for future distributions. With this size distribution, if we were to distribute shares to employees, many would receive zero shares.  So, for:

·         APA-, APFA- and TWU-represented employees, your union will distribute at a later date

·         CWA-IBT-represented legacy American employees, your union and the company will work together to distribute at a later date

·         And, management and support staff employees, the company will distribute at a later date

 

Put simply, there is nothing for you to do at this time as it relates to this distribution. For questions related to this distribution or equity distribution process in general, please visit the Equity Hub or e-mail apfa@creditorinfo.com.

 

08.18.2014 Dividend Payout

 

A dividend of 10 cents per share will be paid on Aug. 18, 2014 (payout day), to shareholders of record as of market close on Aug. 4, 2014. If you are a holder of AAL common stock as of Aug. 4, you will receive a dividend payout from the broker who holds your shares. And, if you have unvested shares, the dividend will be accrued and paid out to you once your shares vest.

 

Legacy American employees who hold shares with Computershare will receive this dividend from Computershare on the payout day. If you previously entered direct deposit information, the cash dividend will be deposited into your bank account. And, if no banking information is in the system, the payment will be mailed as a check to the address on file in your Computershare account.

 

It’s important to note that the dividend payment is subject to  income tax and for tax purposes will be reported to you on a Form 1099-DIV. To avoid additional backup withholding on this dividend payment, it’s important you certify your W-9 with Computershare, if you have not already done so. Complete instructions for certifying are available on the Equity Hub.

 

Here you can review the Q&As provided by AA.  If you have specific questions please email APFA@creditorinfo.com.

 

Details of June 30, 2014 Disputed Claims Reserve Distribution

$2,440,337,160.07        Final Aggregate Total Eligible APFA Wages 

             82,184        APFA Total Shares Distributed on 6/30/2014 (net of capital gains tax paid by AA)

               3,223            Residual Shares resulting from rounding deposited in the APFA Trust for necessary adjustments and costs which APFA may incur in completing claims process. 

              78,961           Total Shares Distributed to Flight Attendants on 6/30/14

Eligible employees will be able to sell or transfer shares beginning July 3, though they may see shares in their accounts under  “Employee Grants and Awards” as early as July 1. As a reminder, these shares  will be available in your Computershare accounts, which  is available by first logging into your retireonline.com account with J.P.  Morgan.  Keep in mind that these shares are considered wages for purposes of federal and state income taxes and FICA, and are subject to required withholding of taxes.  With that in mind, American withheld enough shares to cover necessary taxes and distributed the remainder to eligible employees. Additionally, because these shares were distributed from the reserve, the company also paid capital gains taxes on your behalf. As the share price has risen, the reserve is liable for taxes when it makes distributions much like any other person who purchases shares at one price and sells them at a higher price.


 

Disputed Claims Reserve Distribution - June 30, 2014 

As had been previously explained on JetNet and here on the APFA equity website, during the bankruptcy American contested the validity of a number of claims filed by various entities and individuals. In the event the Bankruptcy Court found any of these claims to be valid, American established a Disputed Claims Reserve of stock.  

Today, the Company announced that shares from the Disputed Claims Reserve will be distributed to certain creditors whose claims have now been resolved. APFA is entitled to 3% of all equity distributed to unsecured creditors.  This 3% allocation applies to the additional equity being distributed to unsecured creditors from the Disputed Claims Reserve. As a result there will be an APFA stock allocation that will be distributed to eligible Flight Attendants.  
 

This distribution will be very small and because the company can only issue a whole number of shares, not all eligible Flight Attendants will receive shares.
 
A full explanation of this distribution can be found on JetNet. Here you can review the Q&As provided by AA.  If you have specific questions please email apfa@creditorinfo.com.

4.07.2014  Day 120 Equity Distribution

For a chart detailing all five equity distributions to eligible pre-merger AA Flight Attendants including the total value of shares at each distribution date, click here.   

American's answer to the question why fewer shares were Distributed on Day 120 than on Day 1 can be better understood considering some basic elements of the distribution methodology: 

  •          Labor received 23.6% of the distribution to unsecured creditors. The lower the stock price the more shares it would take to satisfy the value of a claim; the higher the stock price the fewer number of shares it would take to satisfy the value of a claim. On the Day 1 distribution, the weighted average stock price for determining the distribution was $22.34. On the Day 120 distribution, the weighted average stock price had increased to $37.31, an increase of approximately 67%. As a result of this increase in the share price and the appreciation in the value of shares received prior to Day 120, fewer shares were needed to be distributed on the 120th day to provide a recovery to unsecured creditors including Labor.  
  •          Additionally, as it turned out, the distributions on Days 30, 60 and 90 accounted for 7.6% of the total shares ultimately received, which when added to the Day 120 day distribution, shares distributed after the effective date accounted for 28.9% of the total shares distributed to APFA.   
  •          Lastly, in response to questions received, please note there exists the possibility that there may be additional distributions later this year and beyond as the bankruptcy judge works through the backlog of disputed claims. Any allowed claims will require that shares be allocated to APFA to comply with 3.0% of the total allowed claims. The number of shares to be distributed, if any, and the timing of such potential distributions are unknown at this time. 

Details of Day 120 (4.07.2014) distribution on APFA’s Equity Claim

$2,440,337,160.07         Final Aggregate Total Eligible APFA Wages

1,483,357                      APFA Total Shares Distributed on 4/7/2014

       3,222                       Residual Shares resulting from rounding deposited in the APFA Trust for necessary adjustments and costs which APFA may incur in completing claims process. 

          796                       Shares allocated by American to APFA from the Disputed Claims Reserve. This occurred after American had determined the Day 120 allocations. These shares were deposited in the APFA Trust. 

       6,326                       Shares which in combination with 5,796 shares previously deposited in APFA Trust will cover the claim of 1995 Special Early Out Bridge to Retirement Program and the 1996 Early Out program*

1,473,013                      Total Shares Distributed to Flight Attendants on 4/7/14

*The Q&As posted on August 29, 2012 explain that “[u]pon filing for bankruptcy, American ceased making monthly payments to individuals entitled to benefits under the 1995 Special Early Out Bridge to Retirement Program and the 1996 Early Out program, in violation of the APFA CBA. APFA asserted claims on behalf of these individuals in its proof of claim filed in the bankruptcy proceeding and therefore these claims were settled as part of the LBFO. The amount of these claims can be ascertained from the terms of the APFA CBA. Accordingly, these claims will be paid from the Equity Claim at the same pro rata rate as generally paid by American to unsecured claimants in the bankruptcy proceeding.” 

4.07.2014  Day 120 Equity Distribution Announced


As you know, the majority of US-based pre-merger AA employees are eligible to receive 23.6 percent of the shares of common stock in the new company (AAL) distributed to holders of allowed unsecured claims. The initial distribution of equity occurred on Dec. 9 with approximately 25 million shares of new common stock granted to eligible employees. Much smaller distributions were made on Day 30, 60 and 90. Today, a Day-120 distribution of 7.2 million shares was announced and will be available to all eligible employees to hold, sell or transfer on April 10, 2014. This will bring the total number of AAL shares distributed to eligible U.S.-based pre-merger AA employees to approximately 34.7 million shares."

As was previously explained here on the APFA Equity Web Site, “if the stock price of New American remains steady over the 120 day distribution period, it is anticipated that approximately half of the distribution to APFA will take place on the first date of trading with the remainder of the distribution on the 120th day (with the possibility of a small distribution on the 90th day). To the extent there are material variations in the trading price of the New American stock over the 120 day distribution period, please refer to the Company’s examples on Jetnet.”  While comparable distributions on Days 1 and 120 assumed no fluctuation in the stock price, the allocation here reflects the fact that American’s shares have increased by approximately 68% since December 9. (The answer to Question 2 on today’s JetNet posting provides a further explanation about the difference in the number of shares distributed on Days 1 and 120.  Q&A is also posted on this site here.)

Tomorrow we will know the actual Day 120 allocation of shares and will post a chart showing for each of the five distribution dates the number of shares allocated and their value on the date distributed. 

There remains the possibility that additional shares could be distributed.   American objected to many of the thousands of claims that creditors filed in the bankruptcy, some of which still remain unresolved. American established a Disputed Claims Reserve in which it placed a number of shares in case the disputed claims were ultimately allowed.  Consequently, depending upon how the disputed claims are resolved, there could be small distributions post-Day 120. At this point it is not known when the disputed claims process will be concluded but the earliest the first distribution can occur is Day 180.   

Finally, as we explained in the Q&As posted on August 29, 2012 “[u]pon filing for bankruptcy, American ceased making monthly payments to individuals entitled to benefits under the 1995 Special Early Out Bridge to Retirement Program and the 1996 Early Out program, in violation of the APFA CBA. APFA asserted claims on behalf of these individuals in its proof of claim filed in the bankruptcy proceeding and therefore these claims were settled as part of the LBFO. The amount of these claims can be ascertained from the terms of the APFA CBA. Accordingly, these claims will be paid from the Equity Claim at the same pro rata rate as generally paid by American to unsecured claimants in the bankruptcy proceeding.” The shares to cover the EOP claim will be taken from the APFA Trust which consists of the residual (rounding) shares from the Day 60 and Day 90 distributions as well as shares from the Day 120 distribution. 

In addition the residual shares resulting from the Day 120 distribution will be deposited in the Trust and held to make any necessary adjustments and to cover costs which APFA may incur in completing the claims process.   

As was the case for the first four equity distributions, APFA’s Equity Claim Call Center will be available for all Flight Attendants from 8:00 a.m. to 5:00 p.m. Monday through Friday for two weeks beginning on the day the shares are distributed. The toll free number is 855-332-3407. There, you will be able to speak directly to a BMC representative regarding the distribution of the claim. You can also email BMC's dedicated APFA team at apfa@creditorinfo.com.

For more information, see the Q&A on the left of this site and visit Jetnet. If you have questions about how to access your account or need information on how to buy, sell or transfer your shares, contact AA’s Call Center at 888-285-9438.

Details of Day 90 (3.07.2014) distribution on APFA's Equity Claim

$2,440,337,160.07

Final Aggregate Total Eligible APFA Wages


157,718


APFA Total Shares Distributed on 3/7/2014

3,173


Residual Shares (attributable to the rounding of shares) - deposited to Trust for benefit of Eligible Flight Attendants


154,545


Total Shares Distributed to Flight Attendants on 3/7/2014

3.07.2014  Day 90 Equity Distribution Announced

 

As you know, the majority of US-based pre-merger AA employees are eligible to receive 23.6 percent of the shares of common stock in the new company (AAL) distributed to holders of allowed unsecured claims. The initial distribution of equity occurred on December 9 with approximately 25 million shares of new common stock granted to eligible employees. A second distribution was made on the Day 30 mark of approximately 1.1 million shares and a third distribution was made on Day 60 of approximately 1 million shares, bringing the total number of AAL shares distributed to eligible U.S.-based pre-merger AA employees to 26.8 million.

 

A fourth (90-day) distribution of approximately 0.75 million shares was announced today and will be available for Flight Attendants to hold, sell or transfer on March 10, 2014. From Jetnet: "It’s important to note that because this is a small distribution and because the company can only issue a whole number of shares, not all employees will receive shares and for those who do, the distribution will be smaller than the initial distribution.

 

As was the case for the first two equity distributions, APFA’s Equity Claim Call Center will be available for all Flight Attendants from 8:00 a.m. to 5:00 p.m. Monday through Friday for two weeks beginning on the day the shares are distributed. The toll free number is 855-332-3407. There, you will be able to speak directly to a BMC representative regarding the distribution of the claim. You can also email BMC at apfa@creditorinfo.com.


For more information, see the Q&A on the left of this site and check Jetnet. If you have questions about how to access your account or need information on how to buy, sell or transfer your shares, contact AA’s Call Center at 888-285-9438. 

2.10.2014  Day 60 Equity Distribution

Here are the details of the Day 60 distribution on APFA’s Equity Claim:

$2,440,337,160.07

Final Aggregate Total Eligible APFA Wages


162,153


APFA Total Shares Distributed on 2/7/2014

3,138


Residual Shares (attributable to the rounding of shares) - deposited to Trust for benefit of Eligible Flight Attendants


159,015


Total Shares Distributed to Flight Attendants on 2/7/2014

If you take the Total Shares Distributed to Flight Attendants on 2/7/2014 and multiply by YOUR share allocation percentage you should see the number of shares issued to you before taxes.  Remember, this distribution is approximately 4% of the initial distribution, the distributions to eligible Flight Attendants will be proportionately smaller.  The fair market value of the shares issued 2/7/2014 was $34.66.

2.07.2014  Day 60 Equity Distribution Announced

As previously explained, the majority of US-based legacy American employees are eligible to receive 23.6 percent of the shares of common stock in the new company (AAL) distributed to holders of allowed unsecured claims. The initial distribution of equity occurred on Dec. 9 with approximately 25 million shares of new common stock granted to eligible employees. A second distribution was made on the Day 30 mark of approximately 1 million shares of new common stock distributed to certain US-based legacy American employees. Yesterday, American announced that a Day 60 distribution of 1 million shares will be made as soon as administratively practical on or after February 10.  Flight Attendants will have the option of holding, selling or transferring their shares on or after February 10, 2014, as they wish. Since the third distribution is approximately 4% of the initial distribution, the distributions to eligible Flight Attendants will be proportionately smaller. 
 
As was the case for the first two equity distributions, APFA’s Equity Claim Call Center will be available for all Flight Attendants from 8:00 a.m. to 5:00 p.m. Monday through Friday for two weeks beginning on the day the shares are distributed. The toll free number is 855-332-3407. There, you will be able to speak directly to a BMC representative regarding the distribution of the claim. You can also email BMC at apfa@creditorinfo.com.

For more information, see the Q&A on the left of this site and check Jetnet. If you have questions about how to access your account or need information on how to buy, sell or transfer your shares, contact AA’s Call Center at 888-285-9438. 

1.10.2014  

Here are the details of this week's distribution on APFA’s Equity Claim:

$2,440,337,160.07

Final Aggregate Total Eligible APFA Wages

207,881

APFA Total Shares Distributed on 1/8/2014

3,279

Shares to cover APFA fees and expenses (attributable to the rounding of shares)

204,602

Total Shares Distributed to Flight Attendants on 1/8/2014


If you take the Total Shares Distributed to Flight Attendants on 1/8/2014 and multiply by YOUR share allocation percentage you should see the number of shares issued to you before taxes.  Remember, this distribution is approximately 4% of the initial distribution, the distributions to eligible Flight Attendants will be proportionately smaller. 

1.8.2014

Day 30 Distribution -- American to Distribute Approximately 1.1 Million Shares to U.S.-based Legacy American Employees


As previously communicated, the majority of U.S.-based legacy American employees are eligible to receive 23.6 percent of the shares of common stock in the new company (AAL) distributed to holders of allowed unsecured claims. The initial distribution of equity occurred on Dec. 9 with approximately 25 million shares of new common stock granted to eligible employees. There will be a second distribution initiated today, January 8, 2014, for the Day 30 mark – approximately 1.1 million shares of new common stock distributed to certain U.S.-based legacy American employees. While eligible employees may see their shares in their “Employee Grants and Awards” accounts as early as Jan. 8, they will not be able to sell or transfer shares until Jan. 10. We will not know the final total number of shares issued until after the shares are distributed to eligible employees.


As a reminder, these shares will be available to eligible employees in their Computershare account, which is available by first logging into their retireonline.com account with J.P. Morgan. Shares from this Day 30 distribution cannot be sold or transferred until Jan. 10th. Since the second distribution is approximately 4% of the initial distribution, the distributions to eligible Flight Attendants will be proportionately smaller.


Visit the Equity Hub on Jetnet to ensure you have the information and tools you need related to these shares.  Questions about your allocation e-mail apfa@creditorinfo.com; Other questions call 855-332-3407 and we will do our best to help.

12.13.2013

We’ve had a lot of questions on “how” you get to your share allocation and the number of shares you were awarded.  Some things to remember:

Eligibility: Flight Attendants who were on the APFA/AA Seniority List as of August 19, 2012, with W-2 earnings as an American Airlines Flight Attendant between January 1, 2009 and August 31, 2012, will receive an allocation of the equity provided to APFA in settlement of its bankruptcy claim.

 

Distribution Formula: An individual Flight Attendant’s share of the distribution will be equal to her/his eligible earnings during the measurement period divided by the aggregate eligible earnings of all eligible Flight Attendants during the measurement period of January 1, 2009 to August 31, 2012.

 

Example Calculation

 

Aggregate eligible earnings of all eligible Flight Attendants: $2,440,337,160.07  

Divided by an individual Flight Attendant’s eligible earnings      $150,000.00       equals share percentage of 0.00615%

 

(example shows $150,000 eligible earnings; you must refer to your eligible earnings statement mailed from BMC Group on 11/27/2013 and use your own eligible earnings amount)

 

Take the share allocation percentage and multiply it by the number of shares distributed

0.00615 x 4,911,631 shares distributed among eligible Flight Attendants = 302 shares

 

ePays

 

What you see in ePays is the $$ value of your share award.   The shares were issued at a cost basis of $22.55

300 shares x $22.55 = $6,765  the paystub will show the full $$ value of the award and then the taxes withheld, but does not show you a total.  

 

Computershare

 

What you see in Computershare is the number of shares remaining after taxes and $$ value on the stock market.

12.10.2013

 –  Here are the details of yesterday’s distribution on APFA’s Equity Claim:

$2,440,337,160.07

Final Aggregate Total Eligible APFA Wages

                   4,937,421

APFA Total Shares Distributed on 12/9/2013

                        25,790

Shares to cover APFA fees and expenses (0.5223%)

                 4,911,631

of which 3,210 are attributable to the rounding of shares

Total Shares Distributed to Flight Attendants on 12/9/2013

If you take the Total Shares Distributed to Flight Attendants on 12/9/2013 and multiply by YOUR share allocation percentage you should see the number of shares issued to you before taxes.  

Based on New American’s current stock price, the implied equity value of New American is approximately $18 billion.  If the stock price of New American remains steady over the 120 day distribution period, it is anticipated that approximately half of the distribution to APFA will take place on the first date of trading with the remainder of the distribution on the 120th day (with the possibility of a small distribution on the 90th day).  To the extent there are material variations in the trading price of the New American stock over the 120 day distribution period, please refer to the Company’s examples on Jetnet.  Visit Equity Hub on the Jetnet homepage (www.jetnet.aa.com) for information on what you can do with your shares.

Link to current stock price http://www.nasdaq.com/symbol/aal/real-time

12.9.2013

·        Visit the Equity Hub on Jetnet for the latest information on the equity distribution process, including step-by-step instructions, answers to your questions and other helpful resources. www.jetnet.aa.com

·        If you want to view the number of shares you received after merger close:

Log into your retireonline.com account with J.P. Morgan

Once in your account, choose “Common Stock” and you will be routed to your Computershare account to view your shares 

·       If you have questions about accessing your retireonline.com account:

Call J.P. Morgan at 1-888-843-6630 

·       If you have difficulty selling or transferring your shares or any other questions:

Call the Equity Call Center at 1-888-285-9438 (Domestic) or 440-389-7498 (International) 

·      If you have questions about your eligibility or your share allocation:

To see if you are eligible go to  apfaequity.creditorinfo.com/eligibility

Questions about your allocation e-mail apfa@creditorinfo.com

Other questions call 855-332-3407 and we will do our best to help

12.5.2013

 - APFA's negotiated equity should see its initial payout to APFA members next week. Never before has a Flight Attendant workgroup emerged from bankruptcy with such a valuable equity claim. This past Monday, American announced the total number of shares of common stock the New American will issue. Based on their statement and an analysis performed by Jefferies, APFA's financial advisors, it is estimated that APFA will receive approximately nine (9) to eleven (11) million shares assuming that U.S. Airways current stock price holds steady over the 120-day distribution period.  Eligible APFA members can expect their initial payout, net of taxes, to be deposited into their individual employee accounts established with Computershare and accessible through JP Morgan's website www.retireonline.com

12.4.2013

 - Letters mailed on 11.27.2013 were sent to permanent address on file with AA.  Address confirmation or changes should be handled on Jetnet. You may request a courtesy copy by using the questions/inquiries button on the left of this screen. You must provide your employee identification number and give permission to send by e-mail. 

11.27.2013

 - Letters were mailed to eligible FAs to report your total eligible wages and your share allocation percentage. The formula is comprised of an individual FA's eligible earnings divided by the aggregate total amount of all Flight Attendant eligible earnings. This yields the individual's percentage  of eligible earnings. By multiplying that percentage against the number of shares being distributed to all eligible FAs, the FA's individual allocation of shares can be determined.  AA will be sending more information next week with Q&As, Computershare instructions and other information to assist you in the process. Estimate Calculator [estimate calculator disabled after actual share issuance]

11.27.2013

 - Judge Lane approved the consummation of the merger and the settlement between American, US Airways and the participating state attorneys general. He soundly rejected the request to block the merger brought by individual plaintiffs (the "Alioto Plaintiffs”) who had asserted that the transaction violated the anti-trust law. He found that the Alioto Plaintiffs had presented no evidence of irreparable harm, the most critical element needed to obtain a temporary restraining order.  It is now anticipated that the merger will be completed as quickly as possible with its consummation and AA’s exit from bankruptcy to occur as early as December 9.

11.12.2013

 - The Justice Department accepted a settlement in its antitrust suit against American Airlines and US Airways.  Completion of the merger remains subject to the approval of the settlements by the U.S. Bankruptcy Court, and certain other conditions. The companies now expect to complete the merger in December 2013.

9.12.2013

- American's reorganization plan, which is contingent on regulatory approval, was approved by Judge Lane in US Bankruptcy Court.

8.29.2013

- Judge Sean H. Lane, United States Bankruptcy Judge, has pushed out his decision on confirmation today after reviewing briefs and hearing comments/arguments in Court.  His ruling is now expected on September 12th.

Deadline for W-9s  » W-9 Certification Window Still Open – Certify Today  Did you miss the Aug. 23 deadline to certify your W-9 for the equity distribution? Not to worry. The window for completing your W-9 remains open, but your W-9 must be completed prior to the distribution of shares. As a reminder, the distribution is dependent on emergence from restructuring and the close of the merger. Take a few minutes to review the instructions to help you navigate the process. To fill out your W-9, visit www.retireonline.com. If you already completed your W-9 with Computershare, either recently or in connection with a different distribution, there is no need to recertify since W-9s do not expire. Do you have questions? Want to learn more about the W-9 and the equity distribution process? Visit the Equity Hub, available on the Time and Money page of new Jetnet’s People space.

 

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The deadline for submitting your W-9 is this Friday, August 23rd. If you are certifying online, you have until midnight Eastern Daylight Time to do so. If you are physically mailing your W-9 form, it must be postmarked no later than Friday, August 23, 2013. 

American has retained Computershare to act as New AAG’s stock plan administrator.  Individual employee accounts will be established with Computershare and accessible through JP Morgan's website www.retireonline.com.

If you have any questions regarding eligibility, please check the Questions and Answers section tabbed on the left of this screen.

Bankruptcy Exit and Merger

August 15, 2013.

The Bankruptcy Court hearing on Plan confirmation was held today in New York.  The Judge did not rule on confirmation.  Instead, he ordered legal briefs due August 23rd and the next hearing is scheduled for August 29th.  Judge Sean Lane has to consider whether to confirm the plan in light of the DOJ's AA/US Airways merger blocking lawsuit.

August 13, 2013

The US Department of Justice along with the attorneys general of six states and the District of Columbia filed an antitrust lawsuit in federal court challenging the proposed merger between US Airways and American Airlines. The lawsuit will have the immediate impact of delaying the merger by at least 30-days and probably a few months, while the suit is litigated.

While the lawsuit is somewhat surprising and certainly disappointing, APFA remains confident that the deal will be approved. American’s creditors, including the three labor unions on the property, recognize the merger’s value to the flying public, the aviation industry, and the employees of both carriers. Industry analysts expected certain challenges to the merger and companies are prepared to address those complaints in court.  With this news, there is still more work to be done. APFA will continue to work to support the merger in the courtroom and elsewhere.

Equity Distribution Eligibility Assuming American/US Airways Merger is Approved. 

As provided for in an allocation methodology APFA adopted last year, all Flight Attendants  meeting the following criteria will be eligible to receive an allocation of equity (stock shares) in the new American Airlines Group Inc (“New AAG”): (1) FA must be on the APFA/AA Seniority List as of August 19, 2012; and (2)  Have W-2 earnings as an American Airlines Flight Attendant between January 1, 2009, and August 31, 2012.

IRS W-9 Tax Form Requirement 

08.15.2013

Some new additions to the Q&A provided by AA.

Anticipated Stock Issuance

American has retained Computershare to act as New AAG’s stock transfer agent.  Individual employee accounts will be established with Computershare and accessible through JP Morgan's website www.retireonline.com.  In accordance with APFA’s allocation methodology, New AAG will deposit stock shares to individual employees' accounts.  More information about exactly how this process works will be shared as we become better informed.  Among other functionality of the individual account, you will be able to instruct Computershare to sell your stock.  This is an important feature because APFA wants you to have the flexibility to monetize the stock at your discretion.   

Each eligible Flight Attendant’s individual basis (i.e., eligible earnings) and stock share allocation calculation will be provided to you in an APFA letter by mail in the near future.  In addition, this website will post an online calculator once all details are confirmed.