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View Diary: Bwahahahahahaha! American Airlines and Bain Capital. (282 comments)

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  •  Actually, Bain has not been hired (0+ / 0-)
    January 26, 2012
    Fight over American hiring bankruptcy advisors postponed to Feb. 29

    A courtroom showdown over AMR Corp.'s request to hire several bankruptcy advisors and financial consultants has been postponed until February 29.

    Originally, the bankruptcy court was scheduled to hear AMR's motions to hire firms such as Bain & Co., McKinsey & Co. and Rothschild Inc. at a hearing on Friday. According to filings made on Wednesday, those motions have been deferred to a hearing scheduled later next month.

    AMR, American Airlines and American Eagle have asked the court for permission to hire these consultants. The U.S. Bankruptcy Trustee, the Transport Workers Union and the Association of Professional Flight Attendants have filed objections to the numerous consultants and investment firms that AMR wants to employ.

    Read more here:

    Jan. 27 (Bloomberg) -- American Airlines parent AMR Corp.’s effort to hire a group of legal and financial advisers for its bankruptcy was put on hold amid objections from unions and the U.S. government.

    U.S. Bankruptcy Judge Sean Lane in Manhattan today said he would approve retaining advisers including Rothschild Inc. and Perella Weinberg Partners LP only on a temporary basis, pending agreement from the U.S. Trustee. Fort Worth, Texas-based AMR said it planned to return to court later to seek final approval to hire the firms.

    The U.S. Trustee, which monitors bankruptcy proceedings for the U.S. Justice Department, has objected to AMR’s plans to hire about a dozen firms to provide legal, labor, financial and other advice as it reorganizes. The U.S. Trustee claimed that AMR hasn’t shown it needs all the advisers, that there was a high potential for duplicate services and that some of them had possible conflicts of interest.

    Employees at American Airlines and its American Eagle regional carrier objected to some firms, including Bain & Co. as strategic consultants for Eagle and SkyWorks Capital LLC as an aircraft restructuring adviser.

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