Sunday, 3 May 2015
Last updated 2 days ago
Aug 30 2012 | 3:49am ET
A group of hedge funds may give the bankrupt parent of American Airlines as much as $2 billion in new financing.
The creditor group includes Carlson Capital, Claren Road Asset Management, Cyrus Capital Partners, Litespeed Management and Pentwater Capital Management. AMR Corp., which owns AA, yesterday sought court permission to pay the fees for the hedge funds' lawyers and financial advisers as the group considers a deal that could help AMR exit bankruptcy on its own—and would give it greater leverage in its negotiations with US Airways Group over a merger.
"The engagement of the group presents a reasonable prospect of obtaining commitments that may facilitate the reorganization efforts," AMR said. A spokesman for the company said it "is not uncommon for the debtor to pay fees related" to creditors' efforts to provide financing, in this case the fees for law firm Milbank Tweed Hadley & McCloy and $150,000 a month to Houlihan Lokey Howard & Zukin.
The hedge funds own more than $600 million in AMR bonds. The airline filed for bankruptcy in November.
The deal under consideration would be a rights-offering backstop, Dow Jones reports, worth between $1 billion and $2 billion. A hearing on the matter is scheduled for Sept. 20.
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…