American Airlines (AAMRQ:US) won approval to move forward with negotiations with a group of creditors, including JPMorgan Chase & Co. (JPM:US), that may provide financing for the airline’s bankruptcy reorganization.
U.S. Bankruptcy Judge Sean Lane in Manhattan today approved parent AMR Corp.’s request to pay the fees of the group’s advisers as negotiations proceed.
Talks with the 12-member group come as the carrier works to turn around operations after filing for bankruptcy in November. Fort Worth, Texas-based American says negotiations with the group are an “integral part” of its effort to restructure and exit bankruptcy.
Jack Butler, an attorney for AMR’s unsecured creditors committee, which is separate from the JPMorgan group, told Lane at today’s hearing that the fee agreement is a “highly desirable step forward” in the airline’s bankruptcy.
Others are also interested in providing financing, he said.
“The dialogue will go on with others,” Butler said.
Besides JPMorgan, the creditor group includes Claren Road Asset Management, Cyrus Capital Partners and Pentwater Capital Management, according to court papers.
The group’s law firm is Milbank, Tweed, Hadley & McCloy LLP, and its financial adviser is Houlihan Lokey.
The case is In re AMR Corp., 11-15463, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
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