The attempt by the parent of American Airlines to force bondholders to take a major haircut is “somewhat unique” in aviation bankruptcy cases, one Miami attorney says.
“Here American has fairly expensive bonds,” said Jay Sakalo, a partner in the restructuring and bankruptcy practice group at Bilzin Sumberg Baena Price & Axelrod. “The market has reset, and they’re trying to take advantage by replacing the existing bonds with newer lower yielding bonds. From an economic standpoint, it makes sense. The question is, can they accomplish it?”
