Hedge fund interest in AA; Vietnam Airlines mulls aircraft purchase

A creditor group, which together hold around $600m of AMR bonds, formed of Carlson Capital, Claren Road Asset Management, Cyrus Capital Partners, Litespeed Management and Pentwater Capital Management are getting closer to a deal with AMR Corporation (which owns American Airlines) to inject around $2bn into the Chapter 11 company in a rights-offering backstop. Yesterday they sought court permission to pay the fees for Milbank Tweed Hadley & McCloy and Houlihan Lokey Howard & Zukin, the hedge funds’ lawyers and financial advisers respectively, as the group moves towards a deal that would see AMR exit bankruptcy intact and independent. The