American Airlines Bankruptcy Cost $400 Million
Chapter 11 Outcome Termed ‘Remarkable’ by Report
American Airlines, which filed for bankruptcy in 2011 and merged with US Airways late last year, spent a minimum of $391 million in professional fees and expenses relating to the filing, according to a report filed with the court earlier this week.
The final accounting, which was submitted to U.S. Bankruptcy Judge Sean Lane by fee examiner Robert Keach, includes $375 million in fees to professional firms and $16.3 million in expenses. The total does not include the cost of oversight by Keach and fees from a law firm assisting him, which came to roughly $4 million.
The report called the American Chapter 11 filing “among the most successful of all time” and termed its outcome “remarkable,” noting that all claims had been repaid in full and shareholders received a substantial return as well, the latter an extremely unusual outcome in bankruptcy proceedings.
Judge Lane will review the report and expenses at a hearing in his courtroom next Tuesday.
(Photo: Accura Media Group)