Investors in bankrupt airline celebrate

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By TESTCustomwebLP TESTCustomwebLP December 4, 2013 11:32

Investors in bankrupt airline celebrate

Investors that bet on American Airlines stock when it tumbled to 20 cents a share following its bankruptcy announcement are now reaping the benefit since their holdings will now translate into much larger stakes in the new combined airline, American Airlines Group Inc.

Pinnacle Investment Advisors was on such investor which bought $50,000 worth of American’s shares when they were trading for about $1.35 each in February. American’s shares are now trading around the $11 mark. JPMorgan Securities, Solus Alternative Asset Management, Marathon Asset Management and Pentwater Capital Management all hold similarly large positions in American’s stock at the end of last year.

Shares in the new American will start trading on Monday, when the merger closes, with expectations of them trading at the level enjoyed by US Airways above $22. However that price may be impacted by those same equity investors selling out to enjoy their unexpected windfall.

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By TESTCustomwebLP TESTCustomwebLP December 4, 2013 11:32
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