Not sure exactly what this means but it doesn't look good..looked like a weekend news dump. Maybe some of you DU financial gurus can translate it into laymans English for the rest of us:
http://www.star-telegram.com/business/story/937018.html AMR Corp., parent of American Airlines, will tap a $225 million credit line to reduce the amount of money that could be held back for credit-card reserves.
The Fort Worth-based airline said in a filing with the Securities and Exchange Commission on Friday that one of its credit-card processing agreements requires a reserve based on the amount of unrestricted cash the company has on hand, among other things.
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A sudden increase in credit-card reserves — the money temporarily held back by credit processors on ticket sales — could slow the amount of cash flowing to the airline, making it harder to meet obligations such as debt payments and other costs.
That scenario helped push Frontier Airlines into bankruptcy earlier this year. AMR executives said in July that credit-card processors could potentially hold back a portion of purchases. Airline spokesman Andy Backover noted that the presence of the credit line wasn’t enough to satisfy requirements