Trans World Airlines files for bankruptcy. American Airlines, a subsidiary of AMR Corporation, will acquire TWA in a multistage deal for approximately $500 million. Included in the acquisition is $300 million in cash and $200 million in financing that American has fronted to keep the airline running through its bankruptcy filing. (On January 10th, TWA filed for Chapter 11 protection in Delaware.) American also assumes any debt of TWA and will purchase the airlines plane leases, gates and runway slots.
Kirkland & Ellis represented TWA. The attorneys involved are: