Announcements
Feb. 14, 2013

Kramer Levin Represents Bank of New York Mellon and Law Debenture in Connection with Support Agreement for American Airlines Restructuring

On February 13, 2013, American Airlines and several large bondholders entered into a Support and Settlement Agreement that paves the way for American's merger with U.S. Airways to create the largest airline in the world, as well as a unique framework for a Chapter 11 plan that allocate American Airlines' value among its unsecured creditors and equity holders. Kramer Levin represents indenture trustees Bank of New York Mellon and Law Debenture as trustees for over approximately $450 million in unsecured airport revenue bonds in discussions with the Debtors, U.S. Airways and the bondholders, and were instrumental in negotiating the Support and Settlement Agreement. The group of American Airlines bondholders signing the Support and Settlement Agreement that Kramer Levin worked with includes Avenue Capital, Claren Road, Cyrus Capital, J.P. Morgan Securities, Marathon, Nuveen Asset Management, OppenheimerFunds, Pentwater and Solus. The merger and Chapter 11 plan contemplated by the Support and Settlement Agreement are subject to approval and consummation in accordance with the requirements of applicable bankruptcy law. American Airlines announced its intent to complete the merger and exit from Chapter 11 in the third quarter of 2013.

In addition, Kramer Levin continues to represent Bank of New York Mellon with respect to approximately $1.7 billion in airport revenue bonds secured by American Airlines' rights to use facilities at JFK Airport, LAX Airport and its Tulsa Maintenance Base.

Kramer Levin’s team on American Airlines includes Corporate Restructuring and Bankruptcy partner Amy Caton, Litigation partner Jonathan M. Wagner, Corporate partner Abbe L. Dienstag, as well as Corporate Restructuring and Bankruptcy associates David E. Blabey, Jr. and Darren C. Halverson, and Corporate associate Steven Segal.

Related People

Related Practices

We use cookies on this website to optimize user experience and site functionality and to give you the best possible experience. We do so with your approval. The choice is up to you. Learn more.