On Tuesday in Manhattan, a judge will consider approving nearly $400 million in fees and expenses for the professionals who worked on the American Airlines bankruptcy.
The amounts were recommended by fee examiner Robert Keach, a former American Bankruptcy Institute president who said the attorneys and advisers engineered “perhaps the most efficient airline reorganization case on record.”
Mr. Keach, a lawyer from Bernstein, Shur, Sawyer & Nelson PA in Maine, said in a filing that the case was one of the most successful ever, pointing to the full repayment of the airline’s secured and unsecured creditors as well as a return to equity holders, a rare outcome in a bankruptcy case. American parent AMR Corp. exited bankruptcy through a merger with US Airways Group Inc.
American’s lead bankruptcy counsel, Weil, Gotshal & Manges LLP, is set to earn the most on the assignment, with a $77.4 million bill. Law firm Debevoise & Plimpton LLP, which served as aircraft counsel, logged $54.1 million.
Four other advisers requested more than $20 million: Deloitte Financial Advisory Services LLP, with $36.2 million; financial adviser Rothschild Inc., with $30.5 million; and law firms Skadden, Arps, Slate, Meagher & Flom LLP and Paul Hastings LLP, with $28.9 million and $27.4 million, respectively.