FORT WORTH, Texas, July 3 (UPI) -- AMR Corps' American Airlines is mortgaging seven of its aircraft in a bid to raise $254.9 million.
The planes are believed virtually the last available aircraft assets AMR owns that it can borrow against.
The Wall Street Journal Thursday said analysts believe the move has a positive side. The offering of notes backed by the Boeing Co. jets is a further sign the world's largest air carrier believes its restructuring will allow it to escape bankruptcy.
Lenders provided AMR with more than $1 billion in financing last spring when AMR came within hours of having to seek Chapter 11 bankruptcy protection.
They would have sought the aircraft as collateral for new lending. But the Journal says now, with American believing bankruptcy is far less likely, the company is borrowing against some of its last remaining unencumbered assets that might have been offered to bankruptcy-financing lenders.
