Experts in American Air bankruptcy could get $371M

Associated Press |

DALLAS (AP) — Lawyers and other specialists who worked on the American Airlines bankruptcy case could get $371 million plus expenses.

The biggest haul: $74.5 million in fees for Weil, Gotshal & Manges, American's lead bankruptcy law firm.

American hired lawyers, accountants, aircraft-finance specialists and other professionals during the two years that it spent in bankruptcy court. It left Chapter 11 protection in December under a plan that included a merger with US Airways. Creditors were repaid in full, and American's previous shareholders received stock in a new company formed by the merger, American Airlines Group Inc.



In a report to the bankruptcy judge who handled the case, fee examiner Robert Keach said the experts "collectively achieved a remarkable outcome." He said that a preference for negotiations over litigation saved more money than any scrutiny of the specialists' fees and expenses.

After Weil Gotshal, the next biggest fee recipients were the law firm of Debevoise & Plimpton, $53.7 million; Deloitte Financial Advisory Services, $32.6 million; financial advisers Rothschild Inc., $29.5 million; Skadden, Arps, Slate, Meagher & Flom, a law firm that represented unsecured creditors, $27.8 million; and Paul Hastings law firm, $26.2 million. Six other firms would get at least $7 million each under the examiner's recommendations.

Fees paid to aircraft-value consultant SkyWorks Capital were confidential, the fee examiner said.

The examiner recommended paying expenses for all firms that would total $16.3 million.

The recommendations in the report, filed late Tuesday, go to federal bankruptcy Judge Sean Lane in New York. The judge scheduled a hearing for Tuesday.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
WONCF Wing On Co Intl Ltd 2.95 0.00 0.00 0

Comments

Emerging Growth

Immunovaccine Inc.

Immunovaccine Inc is clinical stage biopharmaceutical company. The Company develops products based on its proprietary vaccine enhancement platform in T cell activating therapies for cancer.

Private Markets

iPRO Network, LLC

We provide the platform, tools, and resources to empower individuals and professionals to market desirable goods and services to the public, taking the place of traditional methods of commerce.

The Green Organic Dutchman

The Green Organic Dutchman Ltd. ("TGOD") produces farm grown, organic cannabis for medical use. The company grows its high quality organic cannabis in small batches using craft growing, all natural…