Experts In American Air Bankruptcy Could Get $371M
DALLAS (AP) -- Lawyers and other specialists who worked on the American Airlines bankruptcy case could get $371 million plus $16 million in expenses.
The biggest haul: $74.5 million in fees for Weil, Gotshal & Manges, American's lead bankruptcy law firm.
Fort Worth, Texas-based 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.
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.
(© Copyright 2014 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)
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