Eagle spinoff - Haynes/Boone Law Firm Retained

[satpak77]

Possible news in August ?

http://amlawdaily.typepad.com/amlawdaily/2011/07/amr-eagle-spin-off.html

http://www.haynesboone.com/haynes_and_boone_flies_on_american_eagle/

July 21, 2011 3:59 PM
Haynes and Boone Flies on American Eagle Airline Spin-Off

Posted by Brian Baxter
Haynes and Boone is advising American Airlines parent AMR Corporation on the proposed spin-off of regional carrier American Eagle as the company aims to raise cash. AMR lost $286 million in the second quarter because of rising fuel costs.


The Dallas-based firm is just one of several working with the country's fourth-largest airline operator on strategic initiatives. AMR announced on Wednesday a purchase of 460 planes from Airbus and Boeing in a deal valued at more than $38 billion. Five Am Law 200 firms landed the legal work on that purchase.


Haynes and Boone is counseling the company on a wide range of legal issues related to the spin-off, including strategic analysis of flight structures, preparation of necessary regulatory and securities filings, renegotiation of current contract terms, and restructuring of financial arrangements and pension, stock, and benefits issues for employees.
Corporate finance partner Janice Sharry, M&A partner Garrett DeVries, employee benefits partner Greta Cowart, restructuring partner Robert Albergotti, and finance and aviation industry partner Sue Murphy in Dallas lead the team advising Dallas-based AMR.


Haynes and Boone previously represented AMR on the restructuring of its Sabre business in Latin America during the nineties and establishment of an operations office in Moscow three years ago so American could become the first U.S. carrier to fly directly from Chicago to the Russian capital.
The firm also advised American two years ago in negotiating $1 billion in liquidity for the airline, along with its acquisition of several important pieces of new equipment, such as engines from General Electric for its fleet of Boeing aircraft.


AMR general counsel Gary Kennedy, corporate secretary Kenneth Wimberly, associate general counsel Tim Skipworth and David Allen, and senior attorney Jeanne Selzer are leading an in-house team working on the proposed spin-off of American Eagle.


Reports emerged earlier this year that AMR was nearing a decision on spinning off American Eagle, which it had previously chosen to sell in 2008 but put off because of market conditions.


A specific date for the divestiture of American Eagle has not yet been announced, but AMR is expected to file a SEC report on the terms in August. The regional carrier operates more than 1,500 daily flights to 170 cities in the United States, Canada, Mexico, and the Caribbean, predominantly using 34-seat Saab turboprop planes and 70-seat Bombardier jets.