US Trustee Rips $14M Fees In American Airlines Union Deals

Law360, New York (September 6, 2012, 1:57 PM EDT) -- A New York bankruptcy judge should not approve American Airlines Inc.'s newly forged agreements with two labor unions because of provisions that could leave the company on the hook for as much as $14 million in fees, the U.S. trustee said Wednesday.

American's new collective bargaining agreements with the Transport Workers Union of America and Association of Professional Flight Attendants would allow each union an administrative claim of up to $7 million to cover fees incurred by attorneys and other professionals in connection with the new...
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