Municipal Bonds Tied to American Airlines
The law office of McCabe Rabin, P.A. is investigating claims on behalf of investors regarding misrepresentations and omissions in connection with the nature and safety of so-called "municipal" bonds linked to American Airlines. Many of these bonds have suffered substantial losses in connection with the bankruptcy filing by American Airlines' parent company, AMR Corporation.
The bonds that are being investigated include:
Puerto Rico Industrial, Medical, Higher Education and Environmental Pollution Control Facilities Financing Authority Special Facility Revenue Bonds;
New Jersey Economic Development Authority Economic Development Bonds;
Dallas-Fort Worth International Airport Facility Improvement Corporation American Airlines, Inc. Revenue Bonds;
Regional Airports Improvement Corporation Facilities Sublease Revenue Bonds;
New York City Industrial Development Agency Special Facility Revenue Bonds;
Alliance Airport Authority, Inc. Special Facilities Revenue Bonds;
Dallas-Fort Worth International Airport Facility Improvement Corporation American Airlines Revenue Refunding Bonds;
Chicago O'Hare International Airport Special Facility Revenue Refunding Bonds;
Puerto Rico Ports Authority Special Facilities Revenue Bonds;
Tulsa Municipal Airport Trust Revenue Bonds; and
Tulsa Municipal Airport Trust Revenue Bonds Refunding Series.
Investors may have been told by their stock brokers or investment advisers that these investments were "municipal bonds" and therefore "safe." In reality, these securities were not traditional municipal bonds guaranteed by the full faith and credit of a municipality. Instead, they were linked to the financial health of American Airlines, which has now filed for bankruptcy protection through its parent AMR Corporation.
The above bonds have all been listed on the schedule of creditors in AMR Corporation's bankruptcy petition.
A lead attorney investigating the sales of these securities, Ryon M. McCabe said, "Whether or not American Airlines bankruptcy was foreseeable is not the issue. If investors were led to believe these were traditional municipal bonds, backed by the full faith and credit of a municipality, then they were misled."
Investors nationwide who purchased any of these bonds may contact McCabe Rabin, P.A for a review of their potential claim.