American Airlines 2012 Annual Report Download - page 106

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Table of Contents
•Unless they elect to receive alternative treatment, holders of prepetition unsecured claims against AMR or American that also are guaranteed by either
such company (Double-Dip Unsecured Claims) will receive shares of preferred stock of New American (the New American Preferred Stock) that will
be mandatorily convertible into shares of New American Common Stock on each of the 30th, 60th, 90th and 120th day after the effective date of the
Plan. Upon the conversion of the New American Preferred Stock on the 120th day after the effective date of the Plan, all New American Preferred
Stock will have been converted to New American Common Stock and no New American Preferred Stock will remain outstanding. The conversion
price of the New American Preferred Stock will vary on each conversion date, based on the volume weighted average price of the shares of the New
American Common Stock on the five trading days immediately preceding each conversion date, at a 3.5% discount, subject to a cap and a floor
price. The New American Preferred Stock allocable to the Double-Dip Unsecured Claims will have a face amount equal to the allowed amount of their
claims, including post-petition interest at the non-default rate;
•Holders of prepetition unsecured claims that are not Double-Dip Unsecured Claims (and holders of Double-Dip Unsecured Claims that elect to
receive such treatment) will receive shares of New American Preferred Stock, as well as shares of New American Common Stock;
•Holders of existing AMR equity interests (including stock, warrants, restricted stock units and options) will receive a distribution of shares of New
American Common Stock representing 3.5% of the total number of shares of New American Common Stock (on an as-converted basis) in addition
to the potential to receive shares of New American Common Stock above such amount; and
•The satisfaction of certain labor-related claims through the allocation to such claims of shares of New American Common Stock representing 23.6%
of the total number of such shares of New American Common Stock ultimately distributed to holders of prepetition general unsecured creditors
against the Debtors.
In each case, the distributions made to each of the foregoing stakeholders will be adjusted to take into account any reserves made for disputed claims under the
Plan.
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