misterwl

American Airlines creditors offer equity financing for reorg plan | LeveragedLoan.com

creditors listed, requests submitted to US Airways


American Airlines creditors offer equity financing for reorg plan | LeveragedLoan.com

cactiboss

I'm stumped as to the meaning of this, would this be the money horton uses to fight off usairways?

Flyby1206

Could be someone like TPG officially putting their name in the hat to help subsidize anything AMR has planned. i.e AMR buying US and being the controlling party for the merger.

blackjack21

Yes think you are right since AMR is asking to pay the group's legal fees.

American Airlines is seeking bankruptcy court approval to pay the legal and financial advisory fees for an ad hoc group of creditors that might provide equity or other financing to help the company exit Chapter 11.

In a motion filed this morning, AMR Corp. said the ad hoc group represents “a substantial and diverse group of creditors of American,” and that it is “prepared to engage in negotiations with [AMR] concerning a plan or plans and such commitments, subject to appropriate due diligence.” The group, which was formed in April, consists of the following members:

Carlson Capital
Claren Road Asset Management
CSS, LLC
Cyrus Capital Partners
JP Morgan Securities
King Street Capital Management
Pentwater Capital Management
Tricadia Capital Management
York Capital Management Global Advisors
AMR has asked the court to approve payments to the group’s lawyers at Milbank, Tweed, Hadley & McCloy, at the firm’s regular hourly rates, and to financial advisors Houlihan Lokey Howard & Zukin. Houlihan’s proposed fees would include a $150,000 monthly rate, plus a “reasonable success fee,” if binding commitments result from the group’s efforts that are closed and funded.

In addition to possible equity commitments, the ad hoc group’s fee letter indicated that it is also “exploring strategic alternatives involving a potential public combination transaction in collaboration with the [official creditors’ committee].” A hearing on the proposed fee letter is scheduled for Sept. 20.

Meanwhile, a spokesman for the main pilot union for US Airways said yesterday that AMR has asked US Airways to end merger negotiations with its unions, as a sign of good faith, and to act as if it had signed a non-disclosure agreement with AMR so that it may continue merger negotiations directly with the company. According to The Dallas Morning News Airline Biz Blog, the US Airline Pilots Association issued a statement to its members on Aug. 27 incorrectly stating that US Airways had already signed an NDA. The union’s spokesman issued a correction on Aug. 28. – John Bringardner

cactiboss

Wow, sounds like this isn't a done deal after all.

ncpilot624

Or to buy us.

CanoePilot

Airways and American will merge that is certain, what isn't certain is who will be in control. That is why it hasn't been announced yet.