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UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT of NEW YORK ------X : in Re : Chapter 11 Case No

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UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT of NEW YORK ------X : in Re : Chapter 11 Case No 11-15463-shl Doc 8542 Filed 06/01/13 Entered 06/01/13 00:14:15 Main Document Pg 3 of 197 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK ---------------------------------------------------------------x : In re : Chapter 11 Case No. : AMR CORPORATION, et al., : 11-15463 (SHL) : Debtors. : (Jointly Administered) : ---------------------------------------------------------------x PROPOSED DISCLOSURE STATEMENT FOR FOR DEBTORS’ FIRST AMENDED JOINT CHAPTER 11 PLAN WEIL, GOTSHAL & MANGES LLP 767 Fifth Avenue New York, New York 10153 (212) 310-8000 Attorneys for the Debtors and Debtors in Possession Dated: New York, New York April 15June __, 2013 THIS IS NOT A SOLICITATION OF ACCEPTANCE OR REJECTION OF THE PLAN. ACCEPTANCES OR REJECTIONS MAY NOT BE SOLICITED UNTIL A DISCLOSURE STATEMENT HAS BEEN APPROVED BY THE BANKRUPTCY COURT. THE DISCLOSURE STATEMENT IS BEING SUBMITTED FOR APPROVAL BUT HAS NOT BEEN APPROVED BY THE BANKRUPTCY COURT TO DATE. 11-15463-shl Doc 8542 Filed 06/01/13 Entered 06/01/13 00:14:15 Main Document Pg 4 of 197 TABLE OF CONTENTS I. Introduction ........................................................................................................................... 1 A. Definitions and Exhibits ................................................................................................. 1 B. Notice to Creditors ......................................................................................................... 1 C. Rationale Underlying the Plan ..................................................................................... 34 1. Merger with US Airways ...................................................................................... 34 2. Plan Compromises .................................................................................................. 5 3. Distribution Mechanics ....................................................................................... 811 D. Table Summarizing the Classification and Treatment of Claims and Equity Interests Under the Plan .................................................................................. 914 E. Foreign Ownership Restrictions Under Title 49 of the United States Code ................ 24 EF. Disclosure Statement Enclosures ............................................................................. 1827 1. Disclosure Statement Approval Order .............................................................. 1827 2. Confirmation Hearing Notice ............................................................................ 1928 3. Ballots ............................................................................................................... 1928 FG. Inquiries ................................................................................................................... 1928 II. Overview of the Debtors Prior to the Commencement of the Chapter 11 Cases .................................................................................................... 209 A. Corporate Structure .................................................................................................... 209 B. Business Operations ................................................................................................. 2130 C. Capital Structure ....................................................................................................... 2231 1. Equity Ownership ............................................................................................. 2231 2. AMR Debt Financing and Other Obligations ..................................................... 232 3. American Debt Financing and Other Obligations ............................................... 232 4. Capital Lease Obligations and Trade Payables ................................................. 2534 D. Events Leading to Commencement of the Chapter 11 Cases .................................. 2534 1. Airline Industry Experiences Fundamental Changes ........................................ 2534 2. Continued Financial Burdens ............................................................................ 2635 III. Overview of the Chapter 11 Cases .................................................................................. 2736 A. Commencement of Chapter 11 Cases ...................................................................... 2736 B. Stabilization of Operations ....................................................................................... 2736 C. Significant Restructuring Activities During the Chapter 11 Cases .......................... 2837 1. American Labor Cost Restructuring ................................................................. 2837 2. Eagle Labor Cost Restructuring ........................................................................ 3342 3. Executory Contracts and Unexpired Leases ....................................................... 345 4. Citi AAdvantage Program ................................................................................... 345 5. Airport and Facility Restructuring .................................................................... 3847 6. Fleet Restructuring ............................................................................................ 3847 D. SGR Financing ............................................................................................................. 55 DE. Merger Agreement with US Airways ......................................................................... 456 1. Exploration of Strategic Alternatives .................................................................. 456 2. US Airways ....................................................................................................... 4657 3. Negotiations with US Airways ......................................................................... 4657 4. Negotiations with Labor .................................................................................... 4758 i 11-15463-shl Doc 8542 Filed 06/01/13 Entered 06/01/13 00:14:15 Main Document Pg 5 of 197 5. The Merger Agreement ..................................................................................... 4859 6. The New American Airlines ............................................................................. 5266 7. Support and Settlement Agreement .................................................................. 5468 EF. Other Events During the Chapter 11 Cases .............................................................. 5670 1. First Day Motions ............................................................................................. 5670 2. Appointment of Creditors’ Committee ............................................................... 570 3. Appointment of Retiree Committee .................................................................... 571 4. Appointment of Fee Examiner ............................................................................ 571 5. Requests for Appointment of Committee of Equity Security Holders ............. 5871 6. Protection of Tax Benefits/AMR Trading Order .............................................. 5872 7. Reclamation Claims and 503(b)(9) Claims ....................................................... 6277 8. Claims Process .................................................................................................. 6378 9. Exclusivity ........................................................................................................ 6480 10. Retiree Health and Welfare Benefits................................................................. 6580 11. GDS Litigation .................................................................................................. 6681 IV. Overview of the Plan of Reorganization ......................................................................... 6782 A. General ..................................................................................................................... 6782 B. Classification and Treatment of Claims and Equity Interests Under the Plan ......... 6783 1. The AMR Debtors ............................................................................................... 683 2. The American Debtors ...................................................................................... 7288 3. The Eagle Debtors ............................................................................................... 796 C. Reservation of “Cram Down” Rights ......................................................................... 981 D. Administrative Expenses and Priority Tax Claims .................................................. 8299 E. Provisions Governing Distributions Under the Plan .............................................. 84100 1. Distribution Record Date ................................................................................ 84100 2. Disbursing Agent ............................................................................................ 84101 3. Timing of Distributions ................................................................................... 84101 4. Delivery of Distributions and Undeliverable Distributions ............................ 85102 5. Withholding and Reporting Requirements ..................................................... 86103 6. Cash Payments ................................................................................................ 87104 7. Distributions on Behalf of Subsidiaries .......................................................... 87104 8. Allocation of Plan Distribution Between Principal and Interest
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