Gotbaum,
who served as the Chapter 11 trustee in Hawaiian Airlines Inc.'s second
bankruptcy proceeding, helped steer the carrier out of Chapter 11 in
2005 by forging a reorganization plan with the company's creditors' committee and Ranch Capital LLC, the controlling shareholder of the airline's parent, Hawaiian Holdings Inc. He
apparently even tooted his own horn
following the airline's bankruptcy exit when he requested an $8 million
fee, but a federal judge approved just under 25% of that amount for his
services.
Gotbaum has
also advised investment funds in the area of restructuring and turnaround management.
The
task, which Gotbaum will share with Stonebridge International LLC chief operating officer Michael Warren, seems fitting for Gotbaum given
the unprecedented number of bankruptcies plaguing corporate America
this past year. With half of the $700 billion allocated for the bailout
almost gone and U.S. auto giant General Motors Corp. teetering
on the brink of bankruptcy, Gotbaum's experience could boost the
business community's confidence as Obama and Co. continue their search
for Hank Paulson's successor as treasury secretary.
The Obama transition team has a $12 million budget to work with, with more than 40% of it taxpayer money. That team
announced the Gotbaum appointment on Nov. 12.
Also announced was the team's ban on individuals who have served as
lobbyists within the past year from participating in the transition
efforts.
- Carolyn Okomo
President-elect Barack Obama has tapped a notable bankruptcy professional to lead his Treasury transition team: Josh Gotbaum.
