AMR Corp (AMR) Continues Wild Stock Action
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After rising 67 percent Tuesday, shares of bankrupt airline AMR Corp. (NYSE: AMR) are seeing action again in Wednesday's pre-open session. Shares of the stock last traded at $0.81, up another 15 percent.
Shares were bought after an appraisal of collateral related to the 7.5 percent Senior Secured Notes showed a value of over 50 percent above the $1 billion in notes. This gave common shareholders hope there will be value in the equity after the bankruptcy - something that is very rare.
The volatility witnessed in the shares triggered six trading halts on Tuesday.
While AMR common shareholders hold onto hope, the company has warned in the past it is not possible to predict if AMR's common stock will have any financial recovery after the Chapter 11.
Although shares remain trading on the NYSE, the exchange has warned it may delist the stock if shares fall below the $1/share minimum average price requirement.
Shares were trading at $1.62 before the bankruptcy and fell as low as $0.20 before the recent surge.
Shares were bought after an appraisal of collateral related to the 7.5 percent Senior Secured Notes showed a value of over 50 percent above the $1 billion in notes. This gave common shareholders hope there will be value in the equity after the bankruptcy - something that is very rare.
The volatility witnessed in the shares triggered six trading halts on Tuesday.
While AMR common shareholders hold onto hope, the company has warned in the past it is not possible to predict if AMR's common stock will have any financial recovery after the Chapter 11.
Although shares remain trading on the NYSE, the exchange has warned it may delist the stock if shares fall below the $1/share minimum average price requirement.
Shares were trading at $1.62 before the bankruptcy and fell as low as $0.20 before the recent surge.
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