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American Airlines hires bankruptcy expert Miller
March 14, 2003
By Jeff St.Onge
I think it's safe to say that nobody what we give back to AA, bankruptcy will most likely happen!
NEW YORK--American Airlines has hired Harvey Miller, a managing director of investment bank Greenhill & Co., to help plan a possible bankruptcy filing, people familiar with the matter said.
Miller, 70, headed the bankruptcy practice at the New York law firm of Weil, Gotshal & Manges before he joined Greenhill last year. With his former law firm, he handled some of the largest Chapter 11 cases in history, including the reorganizations of Texaco Inc., Bethlehem Steel Corp. and R.H. Macy & Co.
As investment banker to American parent AMR, Miller and his colleagues at Greenhill would develop a recovery plan and negotiate with lenders and other creditors on financing. The chances of survival for American, the world's largest airline, would be enhanced by having someone of Miller's experience guiding a reorganization, bankruptcy experts said.
''With Harvey Miller you gain a great deal of credibility,'' said Rick Tilton of Greenacre Asset Advisors, which advises creditors of bankrupt companies.
A successful bankruptcy reorganization would benefit AMR's bondholders, aircraft lessors, employees and other creditors. The Fort Worth, Texas-based company has more than $27 billion in total debt, according to regulatory filings.
AMR is negotiating with Citigroup Inc. and other lenders about raising as much as $2 billion in bankruptcy financing, people familiar with the matter said. The New York Times reported the negotiations on Monday, citing an unnamed banker. The carrier might file for bankruptcy as soon as next month, one person said.
''Harvey Miller is perhaps the leading bankruptcy counselor in the world,'' said Lynn LoPucki, a law professor at the University of California at Los Angeles. ''He has always been someone companies hire when they're thinking about filing for bankruptcy.''
A bankruptcy filing by American would be the largest ever by an airline and the third by a major carrier in less than a year after US Airways Group Inc. and UAL Corp.'s United Airlines.
AMR spokesman Bruce Hicks declined to comment on whether the company has hired Miller or Greenhill. ''We just have a policy, we don't discuss professional relationships we may have or may not have,'' he said. Miller declined to comment.
The carrier has said it wants to permanently reduce annual operating costs by about $4 billion to avoid filing for bankruptcy and compete with growing low-cost rivals. It has identified $2 billion in savings, and is negotiating with its unions for another $1.8 billion in concessions.
AMR also has hired Weil Gotshal's Marcia Goldstein, a Miller protege, as its bankruptcy lawyer, sources said. Goldstein also represents WorldCom Inc. in its Chapter 11 case, the largest ever.
Bloomberg News
March 14, 2003
By Jeff St.Onge
I think it's safe to say that nobody what we give back to AA, bankruptcy will most likely happen!
NEW YORK--American Airlines has hired Harvey Miller, a managing director of investment bank Greenhill & Co., to help plan a possible bankruptcy filing, people familiar with the matter said.
Miller, 70, headed the bankruptcy practice at the New York law firm of Weil, Gotshal & Manges before he joined Greenhill last year. With his former law firm, he handled some of the largest Chapter 11 cases in history, including the reorganizations of Texaco Inc., Bethlehem Steel Corp. and R.H. Macy & Co.
As investment banker to American parent AMR, Miller and his colleagues at Greenhill would develop a recovery plan and negotiate with lenders and other creditors on financing. The chances of survival for American, the world's largest airline, would be enhanced by having someone of Miller's experience guiding a reorganization, bankruptcy experts said.
''With Harvey Miller you gain a great deal of credibility,'' said Rick Tilton of Greenacre Asset Advisors, which advises creditors of bankrupt companies.
A successful bankruptcy reorganization would benefit AMR's bondholders, aircraft lessors, employees and other creditors. The Fort Worth, Texas-based company has more than $27 billion in total debt, according to regulatory filings.
AMR is negotiating with Citigroup Inc. and other lenders about raising as much as $2 billion in bankruptcy financing, people familiar with the matter said. The New York Times reported the negotiations on Monday, citing an unnamed banker. The carrier might file for bankruptcy as soon as next month, one person said.
''Harvey Miller is perhaps the leading bankruptcy counselor in the world,'' said Lynn LoPucki, a law professor at the University of California at Los Angeles. ''He has always been someone companies hire when they're thinking about filing for bankruptcy.''
A bankruptcy filing by American would be the largest ever by an airline and the third by a major carrier in less than a year after US Airways Group Inc. and UAL Corp.'s United Airlines.
AMR spokesman Bruce Hicks declined to comment on whether the company has hired Miller or Greenhill. ''We just have a policy, we don't discuss professional relationships we may have or may not have,'' he said. Miller declined to comment.
The carrier has said it wants to permanently reduce annual operating costs by about $4 billion to avoid filing for bankruptcy and compete with growing low-cost rivals. It has identified $2 billion in savings, and is negotiating with its unions for another $1.8 billion in concessions.
AMR also has hired Weil Gotshal's Marcia Goldstein, a Miller protege, as its bankruptcy lawyer, sources said. Goldstein also represents WorldCom Inc. in its Chapter 11 case, the largest ever.
Bloomberg News
