We’ve now obtained the letter from the Ad Hoc Group of AMR Corporation Creditors to Allied Pilots Association president Keith Wilson, as well as the APA interpretation of that letter. We’ll present the unsigned message from the APA that introduces the letter from Gerard Uzzi, a partner at Milbank, Tweed, Hadley & McCloy LLP, followed by the Uzzi letter.

The APA Message

Ad Hoc Group of AMR Corporation Creditors – Milbank Letter to APA

The following letter was sent to APA President Keith Wilson. The letter is from Milbank, Tweed & McCloy, which is the law firm representing the Ad Hoc Group of AMR’s Creditors. The Ad Hoc Group is a significant group of financial creditors who have recently banded together.

While this letter only references a “stand-alone” plan of reorganization, it should not be interpreted as an endorsement of either a stand-alone plan or a merger. A merger in itself necessitates a Board of Directors change, while a stand-alone plan does not – which is why this letter only addresses a stand-alone plan.

This letter provides APA with the benefit of a written commitment by the Ad Hoc Group stating that it will not agree to a plan of reorganization that does not otherwise include a new independent AMR Board of Directors and that key stakeholders, including labor, will be a part of that selection process.

The new AMR Board will have the responsibility to determine who will be a part of the new management team. It will also determine the optimal strategic plan for the new American Airlines.

This commitment by the Ad Hoc Group – which intends to be one of the primary negotiators of any plan of reorganization – shows that APA’s 13.5 percent equity claim is of critical importance in shaping what the new American Airlines will look like and who will lead it.

Having the right leadership managing the company going forward is of vital importance to the members of the Allied Pilots Association. We now have a commitment from this significant financial creditor group to help us pursue that end goal.

The Milbank/Uzzi letter

Re: In re AMR Corporation et. Al., Case No. 11-15463 (SHL)

Dear Mr. Wilson:

I write on behalf of the Ad Hoc Group of AMR Corporation Creditors. The Group is comprised of various financial institutions holding substantial claims against the Debtors in the above-referenced chapter 11 cases. As material stakeholders of the Debtors, we intend to be one of the primary negotiators of any Plan of Reorganization.

Please be advised that our support for a stand-alone Plan of Reorganization for AMR will be conditioned, among other things, on that Plan providing for the naming of a new Board of Directors. As is customary, we expect the Board to be named in a process that solicits input from those who will own significant shares of the equity of the reorganized entity and to be comprised of individuals mostly without prior affiliation with the company.

That Board will, among other things, be responsible for selecting a management team to lead the company and determining the optimal strategic plan for the airline. We expect the Board to share our view that an important criteria for selecting the leader of that team will be a demonstrated ability to maximize shareholder value.

We look forward to working with the Debtors’ other material stakeholders on a Plan of Reorganization.

Sincerely,

Gerard Uzzi