Judge Sean Lane of the U.S. Bankruptcy Court for the Southern District of New York in Manhattan is scheduled to consider the examiner request on Nov. 8.

Marathon Asset Management, which manages funds holding more than $100 million in claims against the Fort Worth debtor and its affiliates, wants an examiner to investigate the intercompany transactions that occurred between American Eagle Airlines Inc., American Airlines and AMR in the months before the companies filed for Chapter 11 protection on Nov. 29, 2011.

According to court documents filed Tuesday, Oct. 23, in the weeks leading up to the debtors' Chapter 11 filings, American Eagle and American Airlines consummated a series of intercompany transactions that resulted in American Airlines assuming $2.26 billion in additional debt that American Eagle owed to Brazil's Agência Especial de Financiamento Industrial, or Finame, and parent Banco Nacional de Desenvolvimento Econômico e Social, known as BNDES.

"On their face, the prepetition transactions raise serious questions as to whether American Airlines received fair value in exchange for incurring the billions of dollars in debt and as to whether these transactions were otherwise improper," Marathon said in court filings.

According to court papers, AMR cleaned up American Eagle's overleveraged balance sheet before a potential spinoff by transferring American Eagle's 263 regional jets to American Airlines. In exchange, American Airlines assumed American Eagle's outstanding $2.26 billion in debt. The jets were valued at $1.8 billion at the time of the transfer, so to make up for the difference, American Eagle canceled an undisclosed amount of intercompany debt between it and American Airlines.

On Oct. 9, AMR filed a motion seeking approval of a settlement with Finame, BNDES and Bank of New York Mellon Trust Co. NA, which would give the lenders a $650 million general unsecured claim against American Airlines and AMR. AMR would also return certain parked aircraft to the lenders that weren't necessary for its operations and amend other terms of its aircraft lease agreement.

A hearing on the settlement is scheduled for Oct. 30. Marathon objected to the settlement on Tuesday.

According to Marathon's examiner request, "an independent examiner would be able to conduct an investigation leading to a credible conclusion, mitigating the lack of transparency in these matters to date."

According to debtor counsel Harvey Miller at Weil, Gotshal & Manges LLP, however, the examiner request is a litigation tactic that is "inappropriate and unnecessary." The appointment of an examiner, he said, would add another administrative expense to the estate. He added that the official committee of unsecured creditors is already investigating the prepetition transaction.

Marathon in its motion, though, maintained that while it was "unaware of any detailed investigation" by the committee, it would be defective, as it would concentrate on the debtors' estates as a whole and not the American Airlines estate in particular.

AMR spokesman Sean Collins said: "We will respond to the examiner motion in due course and address it before the bankruptcy court. We feel strongly that the relief we have requested for the [aircraft settlement] transaction is appropriate and in the best interests of our business operations and economic stakeholders and that the bankruptcy court will overrule the objections and grant the relief we are requesting."

The examiner request is the latest broadside in the AMR case from Marathon, which reportedly sent a letter to AMR chief executive Tom Horton last week with hedge fund Appaloosa Management LP. The two firms, reports said, alleged talks with an ad hoc group of creditors regarding a potential reorganization plan were inappropriate.

The ad hoc group, which court papers show consisted of 12 noteholders as of Sept. 1, has offered to fund a plan. Under a Sept. 21 order, AMR is reimbursing the group for work fees related to a potential commitment.

AMR said in court papers on Oct. 16 it continues to explore strategic alternatives with its official creditors' committee.

American Airlines is a major U.S. passenger airline and freight carrier providing service to 160 destinations in North America, the Caribbean, Latin America, Europe and Asia. It blamed its bankruptcy on weak financial performance since 2009, which has left the company behind its major network rivals, many of which restructured and emerged from bankruptcy before 2009.

American Airlines is the only major U.S. airline that had not previously sought Chapter 11 protection.

AMR was hurt further by the uncertain economic outlook, volatile fuel prices, its uncompetitive cost structure and its diminishing financial condition, which had been the subject of industry analyst reports and the cause of speculation about a possible bankruptcy filing.

Rothschild is AMR's financial adviser.

Philip D. Anker and George W. Shuster Jr. at Wilmer Cutler Pickering Hale and Dorr LLP represent Marathon Asset Management.