AMR Seeks to Pay Rothschild $15 Million Fee as Adviser

AMR Corp., the bankrupt parent of American Airlines, asked a federal judge to approve the hiring of Rothschild Inc. as a financial adviser and investment banker, with a promise of $15 million in fees for the firm when either a bankruptcy plan or restructuring transaction is approved.

Rothschild, which is already working for AMR on a $400,000 retainer, would get a monthly fee of $200,000, so-called new capital fees of 1 percent to 3 percent of the amount raised, and reimbursed expenses, according to a court filing in U.S. Bankruptcy Court in Manhattan. The investment banking firm, which advised AMR before it sought court protection, has valuable knowledge of the company’s finances and creditors, AMR said yesterday in its request to the judge.