Source: Reuters Author: Yinka Adegoke 06/25/2009
Subject Concerned: Airlines
American Airlines has obtained the approval of its lenders to rework the terms of a credit agreement with its lenders, according to a regulatory filing on Jun. 25, 2009.
The remaining loan facility under the credit agreement consists of a fully drawn US$433 million secured bank term loan facility with a final maturity of Dec. 17, 2010.
The airline and its guarantor AMR Holding will be allowed to waive stringent profit ratio requirements for the period ending on Jun. 30, 2009, but thereafter AMR will be required to maintain a ratio of cash flow to fixed charges above agreed minimum levels over the next several quarters.
American will pay fees to the lenders who agreed to the amendment.