Analyst Was Early to See Possible Value in AMR Shares

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Last week, in a regulatory filing of a letter to a U.S. Justice Department attorney, AMR bankruptcy attorney Harvey Miller appeared to lend a measure of support to Stark's analysis. In the letter, Miller said AMR has "made remarkable progress in stabilizing their businesses and improving their prospects.

"Depending upon the ultimate strategic alternative adopted and pursued, there exists a reasonable possibility that there may be value for AMR equity holders consistent with the absolute priority rule," he said.

Earlier, Miller opposed a request by an equity holder to allow a committee to represent equity holders. He said then that it was unlikely that equity holders would receive anything for their shares. But now, he said, a possibility exists.

For its part, AMR said in November that its shares would have little or no value when it emerges from bankruptcy. In last week's filing, AMR again cautioned against assuming that the shares will have value. It said that Miller's letter "was not prepared for the purpose of providing the basis for an investment decision."

-- Written by Ted Reed in Charlotte, N.C.

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