Transport Airlines

American Airlines-US Airways merger: Activist lawyer led Horton to talks

Excerpt from The Wall Street Journal

Feb 09, 2013 9:10 am

Skift Take

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.

— Dennis Schaal

Free Report: The Future of Personalized Marketing in Travel

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.

Read the Complete Story →

Tags: , ,

Next Up

More on Skift

SAP’s $8.3 Billion Acquisition of Concur Means the Death of the Perfect Trip
Concur to Be Acquired by SAP for $8.3 Billion
The 9/11 Memorial and Museum Has a Few Lessons About the Future of Tourism
Register Now for a Webinar on “The Rise of the Silent Traveler”