American Airlines extends agreement with the U.S. Treasury to receive assistance.
American Airlines Group reached an extension of its agreement with the U.S. Treasury Department and expects to receive at least 3.087 billion dollars in aid to pay the payrolls of its employees, according to a document it delivered on Tuesday to the U.S. stock exchange regulator.
See also: American Airlines begins the gradual return laid-off workers.
The U.S. company, which is made up of American Airlines and regional carriers Envoy Air and Piedmont Airlines, extended the agreement with the Treasury last Friday and already received an initial payment of 1.543 billion dollars, according to EFE.
See also: American Airlines changes policies on emotional support animals.
The agreement with the Treasury establishes that the funds must be used to pay compensation to employees and that the group must refrain from non-voluntary layoffs and salary reductions until the end of March.
As part of the pact, the company issued warrants for the Treasury to purchase airline stock at $15.66 per share. American has issued options to purchase about 2.8 million shares and could issue more up to a total of 5.7 million shares as Treasury aid increases in the future.
The agreement also extended the window of time for the group to borrow more funds under the Treasury credit facility to May 28.
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