Bill on Bankruptcy: How Purchasers of AMR Stock Made a Killing
March 13 (Bloomberg Law) — Someone who bought stock in American Airlines last year already made a killing. Stock that could have been bought in November for less than 40 cents a share is now trading above $4, for reasons explained on the video with Bloomberg Law’s Lee Pacchia and Bloomberg News bankruptcy columnist Bill Rochelle.
The next topic is how to avoid losses in buying junk debt. From there, Rochelle discusses why U.S. bondholders were able to force Vitro SAB to pay perhaps twice as much in settlement as the Mexican glass maker intended under a foreign reorganization plan the U.S. courts won’t enforce.
The worst may be over for bankruptcy professionals, because Rochelle says the decline in filings may have bottomed out. To conclude the video, Rochelle points out a case the Delaware bankruptcy court should send to Michigan and a bankruptcy before the U.S. Court of Appeals in San Francisco that could end up in the U.S. Supreme Court.