(Updates with retainer in second paragraph.)
Dec. 29 (Bloomberg) -- AMR Corp., the bankrupt parent of American Airlines, asked a judge to approve its hiring of Rothschild Inc. as a financial adviser and investment banker, with a promise of $15 million in fees on confirmation of a bankruptcy plan or restructuring transaction.
Rothschild, which is already on a $400,000 retainer from AMR, would get a monthly fee of $200,000, so-called new capital fees of 1 percent to 3 percent of the amount raised, and reimbursed expenses, according to a court filing. The investment banking firm, which advised AMR before its bankruptcy, has valuable knowledge of the company’s finances and creditors, AMR said yesterday in its request to the judge.
Rothschild’s proposed fees fall within “the range of investment banking fees in other large and complex Chapter 11 cases,” AMR said.
AMR, based in Fort Worth, Texas, this month won permission to pursue a deal to buy 32 planes from Boeing Co. through 2012 and to reject leases on some aircraft as it reorganizes with a more competitive fleet.
U.S. Bankruptcy Judge Sean Lane in Manhattan is handling the bankruptcy of the third-largest U.S. airline company, which made its filing on Nov. 29.
The case is In re AMR Corp., 11-15463, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
--Editors: Stephen Farr, Charles Carter
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