U.S. Trustee Tracy Hope Davis is arguing against pay boosts for two financial-advisory firms that evaluated American Airlines' parent AMR Corp.'s pursuit of $3.25 billion in new financing, Dow Jones Daily Bankruptcy Review reported today. The financing would help the struggling airline pay off some bond debt and fund its exit from bankruptcy protection after merging with U.S. Airways Groups Inc. Under proposed tweaks to their hiring agreements, financial advisory firms Rothschild Inc. and Moelis & Co. would split another $15 million for their help in evaluating the financing deal—an additional payment that is unwarranted for firms that already have "generous fee arrangements," Davis argued in court papers filed on Thursday.
