Ohio State Teachers' Retirement System, Columbus, has sold its 1.8 million shares of AMR Corp. stock.
The $62.6 billion retirement system, the largest pension fund stockholder in AMR, sold the shares Tuesday as part of the fund's daily evaluation of its stocks, spokesman Nick Treneff said in a telephone interview. He didn't disclose how much of a loss the retirement system took in the sale.
That leaves CalPERS, CalSTRS and several money management firms as some of the largest stockholders in the parent company of American Airlines. AMR filed for Chapter 11 bankruptcy protection Tuesday.
The $227.5 billion California Public Employees' Retirement System, Sacramento, has 1.2 million shares. The $139.2 billion California State Teachers' Retirement System, West Sacramento, has 573,414 shares. Officials at CalPERS and CalSTRS declined to comment on American's Chapter 11 bankruptcy filing.
Among money managers holding the most AMR stock are PRIMECAP Management, with 41 million shares; ICC Capital Management, 25 million shares, and Capital World Investors with 24.8 million shares. Stock holding information is according to Bloomberg data.
One of the biggest questions is whether American Airlines will terminate its four defined benefit pension plans, and transfer responsibility to the Pension Benefit Guaranty Corp. American has $8.3 billion in combined assets to cover roughly $18.5 billion in benefits, according to the PBGC, which is expected to ask to be on AMR's creditors committee.
“We will encourage American to fix its financial problems and still keep its pension plans,” PBGC Director Joshua Gotbaum said in a statment on Tuesday, when AMR announced its bankruptcy filing. He said American Airlines employees could lose $1 billion in pension benefits if American terminates their plans.
Jeremy Gold, president of Jeremy Gold Pensions, a New York consulting firm, said while eachy bankruptcy case is different, when PBGC took over a plan for pilots at Delta Air Lines Inc., “the pilots lost a lot of money” because of PBGC's cap on benefits.
“A very senior pilot (at American) could lose two-thirds of his pension,” Mr. Gold said.