ITEM 7.01. REGULATION FD DISCLOSURE.
As previously reported,American Airlines, Inc. ("American"), entered into an indenture, dated as ofJune 30, 2020 , by and among American,American Airlines Group Inc. andWilmington Trust, National Association , as trustee (the "Trustee"), relating to American's 11.75% Senior Secured Notes due 2025 (the "Notes"). Pursuant to the Indenture, American is required to deliver to the Trustee periodic appraisals with respect to the appraised value of the first lien collateral for the Notes, which first lien collateral consists of certain assets, rights and properties that American uses to provide non-stop scheduled air carrier services between (a) certain airports inthe United States and (b) certain airports inAustralia ,Canada , theCaribbean ,Central America ,China ,Hong Kong ,Japan ,Mexico ,South Korea , andSwitzerland (collectively, the "First Lien Collateral"). American has delivered to the Trustee appraisals, each datedNovember 24, 2020 , with respect to the First Lien Collateral. Using a discount rate of 11.5% and a perpetuity growth rate of 1.5%, the aggregate appraised value of the First Lien Collateral reflected in the appraisals is$7.111 billion . The appraisals are subject to a number of significant assumptions, limitations and risks, and were prepared based on certain specified methodologies described therein, including a discounted net present value calculation to projected annual cash flows of certain of American's scheduled services. The appraisals may not accurately reflect the fair market or realizable value of the First Lien Collateral. An appraisal that is subject to different assumptions, limitations and risks, and/or that is based on other methodologies, may result in valuations that are materially different from those contained in the appraisals summarized above. The information in Item 7.01 is being furnished and shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section and shall not be deemed incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
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