May 10, 2013
Summary of Motion to Approve MOU
The Debtors filed a motion seeking to approve the memoranda of understanding among certain of the Debtors, US Airways, Inc. and any successor (“US Airways”) and the various unions representing the employees of the Debtors and US Airways. The memoranda of understanding address the effect of the expected merger between American and U.S. Airways. With regard to the TWU, the memorandum of understanding (the “MOU”) provides as follows:
i. New CBA Modifications. Upon the effective date of the merger, the terms and conditions of the new collective bargaining agreements of the seven TWU-represented workgroups that were previously approved by the Bankruptcy Court on June 28, 2012 and September 12, 2012, respectively, will continue to remain in full force and effect, except that:
May 09, 2013
The debtors plan to file a motion to approve the (a) a memorandum of understanding regarding contingent collective bargaining agreement among AA, US Airways, Inc. and any successor (“US Airways”), APA and US Airline Pilots Association (“USAPA”), together with (b) a letter agreement, dated January 4, 2013, between AA and APA regarding reimbursement of merger-related expenses, (c) a letter agreement between AA, US Airways, APA and USAPA regarding USAPA MOU vote ratification timing, executed on February 5, 2013, (d) a letter agreement, dated January 7, 2013, between US Airways and APA regarding MOU bargaining history, copying AA counsel, and (e) a letter agreement, dated March 20, 2013, between AA, US Airways and APA confirming modifications to the APA CBA (defined below) (collectively, the “Pilots MOU”), and (ii) a memorandum of understanding among AA, US Airways and the TWU (the “TWU MOU,” and together with the Pilots MOU, the “MOUs”).
We expect the motion to be scheduled for hearing May 30, 2013 at 11:00 AM with an objection deadline of May 23, 2013.
May 09, 2013
THE DEBTORS’ AND COMMITTEE’S APPLICATIONS TO AMEND RETENTION AGREEMENTS.
On April 25, 2013, AMR Corporation (“AMR”) filed an application to amend the retention agreement of its financial advisor and investment banker, Rothschild Inc. (“Rothschild”), to provide for a fee (the “New Capital Fee”) of 1%, not to exceed $10 million, of the proposed chapter 11 exit financing (the “Exit Financing”) in connection with the merger contemplated by AMR’s proposed plan of reorganization (“Plan”). Similarly, the creditors committee filed an application to amend the engagement agreement of its investment banker, Moelis & Co. LLC (“Moelis”), to provide for a New Capital Fee of .5%, but not to exceed $5 million, of the proposed Exit Financing.