American Airlines-US Airways merger: Activist lawyer led Horton to talks
Butler was a highly unlikely candidate to cajole pilots into agreements since he has historically played a key role in gutting pension plans. But, behind the scenes, he managed to command the ears of both the pilots and Horton.
Excerpt from The Wall Street Journal
Jack Butler, a 56-year-old bankruptcy lawyer who led the creditors’ committee, was instrumental in getting American Airlines’ parent AMR Corp. to the negotiating table with US Airways Group Inc. by prodding and coaxing Tom Horton, AMR’s chief executive, and his advisers. He also has pestered American’s unions and US Airways pilots and executives for over a year.
Companies under bankruptcy protection like to think they have wide latitude to control their reorganizations, especially because the law often prevents creditors from offering competing plans. But Mr. Butler’s relentless activism in the American case is a reminder that bondholders, employees and suppliers have the last legal word on what happens in a Chapter 11 case and can exert their will to influence the outcome.