As American Airlines works towards a debt restructuring that will save the company, big decisions are being made by company officials. The parent company of American, AMR Corp., asked a federal judge for approval to hire a financial adviser to help with the airline bankruptcy case. AMR plans to pay the financial company $15 million in fees for their role in the bankruptcy process, a number that has many people questioning American’s current financial position.
Bringing In The Big Guns
If the bankruptcy court approves AMR’s request, Rothschild Inc. stands to become part of one of the largest airline bankruptcies in history. Having been working with American Airlines since 2006 Rothschild, already receives a $400,000 retainer for their services. If the court approves the request, Rothschild would then get $200,000 a month for assisting with the Chapter 11 case.
Since Rothschild has a long history of working with American Airlines, they are well aware of the company’s financial matters. Having a long working knowledge of the company’s finances and creditors could put Rothschild in a unique position that could prove to be favorable in the end.