Originally Posted by
morrisunc
Need to read the wsj article. They agree on split. 30/70.
Parker believes that AMR creditors should receive 70% of the equity. Horton believes that the creditors should receive more than 70% and some creditors think they should receive up to 80% of the equity:
US Airways has told creditors it has come to a view that American creditors should receive roughly 70% of a combined company and US Airways shareholders 30%, though serious negotiations on the exact contours of a deal haven't yet begun, this person said. Some American creditors believe they should get as much as 80% of a combined airline, according to people familiar with their views.
The pilots will likely get 13.5%, the FAs settled for 3.5% and the TWU settled for 4.8%. 80% for the unsecured creditors would leave 58% for non-employee creditors.
IMO, US shareholders should receive no more than 15% and AMR creditors at least 85% of the equity in the combined company.