=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SF Gate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2003/08/05/f= inancial1110EDT0076.DTL ---------------------------------------------------------------------- Tuesday, August 5, 2003 (AP) AMR cancels plan to raise $250 million in debt (08-05) 13:35 PDT FORT WORTH, Texas (AP) -- AMR Corp., the parent of American Airlines, canceled a plan to raise $250 million by issuing new debt, saying it doesn't need the cash immediately. AMR stock fell more than 10 percent Monday after the company announced t= he debt offering, which would have allowed institutional investors to convert the notes to stock. The company canceled the offering late Monday and the shares rebounded a bit on Tuesday, closing up 24 cents, or 3 percent, at $8.28 on the New York Stock Exchange. AMR had planned to use the money for working capital and general purpose= s. The company said last month it had $2.4 billion in cash, up from $1.8 billion at the end of March. Chief financial officer Jeffrey Campbell said in the statement late Mond= ay that the airline had seen "significant improvement" in its operating results beginning in May and has more than $2.7 billion in cash. "We felt it made no sense to proceed with this transaction in market conditions as they evolved today and which are at odds with the growing improvement of our company," Campbell said. Fort Worth-based American has lost more than $6 billion since the start = of 2001. The company barely won $1.8 billion in labor concessions that officials said were needed to stay out of bankruptcy. The airline has laid off more than 7,000 workers. On the Net: AMR: www.amrcorp.com =20 ---------------------------------------------------------------------- Copyright 2003 AP