NEW YORK (Reuters) – American Airways Group Inc (AAL.O) is in superior talks to rent Guggenheim Securities co-chairman James Millstein for recommendation on tapping a $50 billion business aid bundle out there from the U.S. Treasury Division to deal with the coronavirus pandemic, folks accustomed to the matter stated. FILE PHOTO: An American Airways airplane sits on the tarmac at LAX in Los Angeles, California, U.S., March 4, 2019. Image taken March 4, 2019. REUTERS/Lucy NicholsonMillstein is one in all Wall Road’s most seasoned debt restructuring bankers and from 2009 to 2011 was the chief architect of the Obama administration’s overhaul of sure monetary corporations the federal government had bailed out, together with insurance coverage big American Worldwide Group Inc (AIG.N). Whereas American Airways has stated it has not but determined whether or not it would search U.S. authorities assist, Millstein’s anticipated appointment signifies the most important U.S. airline is actively getting ready for such a transfer and girding for negotiations with Treasury officers. Coronavirus aid laws enacted final week offers as much as $25 billion in loans and mortgage ensures for U.S. airways which have suffered from an unprecedented decline in passengers, with a further $25 billion out there in direct money grants that might end result within the U.S. authorities receiving possession stakes within the corporations. Have been Millstein to be employed, he can be advising American Airways on the shape and phrases of assist it ought to pursue and navigate the U.S. Treasury Division’s course of for requesting the monetary help, the sources stated. Recommendation given to the Fort Price, Texas-based firm can be carried out in his personal capability, impartial of Guggenheim, the sources added. The sources cautioned that no resolution on American Airways accepting U.S. authorities assist had but been made and requested anonymity to debate the confidential preparations. American Airways declined to remark, whereas Millstein didn’t reply to a request for remark. American Airways stated final week it might be slashing its capability 60% in April in contrast with the identical interval a yr in the past and as much as 80% in Might as a result of a dramatic discount in prospects and journey restrictions to curb the unfold of coronavirus. Its shares have misplaced roughly half their worth within the final 5 weeks, giving it a market capitalization of about $6 billion. The corporate disclosed this month it had entry to greater than $7.three billion of liquidity. Its long-term debt as of the top of December totaled about $23.9 billion. American Airways Chief Govt Doug Parker stated final week that the corporate can be eligible for as much as $12 billion in whole U.S. assist. He added that combining authorities aid with a “comparatively excessive out there money place” would “permit us to journey by means of even the worst of potential future eventualities.” Some phrases of the money grants “aren’t at present nicely outlined,” Parker stated, including that the corporate was not but sure it might meet the circumstances essential to obtain these funds. He stated he anticipated the help phrases “won’t be onerous.” Millstein, a former Lazard Ltd (LAZ.N) banker, has labored on bankruptcies and different challenges dealing with many U.S. conglomerates over the past twenty years, together with representing unionized staff in labor negotiations with Basic Motors Co (GM.N) and different automakers. Millstein offered his restructuring advisory agency to Guggengeim in 2018. He most not too long ago suggested Puerto Rico on its debt woes, in addition to California on finest grapple with catastrophic wildfires and the chapter of energy utility PG&E Corp (PCG.N). Millstein labored with Parker when he suggested US Airways on its merger with American as a part of the latter’s chapter reorganization in 2013. Parker was CEO of US Airways earlier than assuming the identical position within the mixed firm. POTENTIAL STRINGS ATTACHED Ought to American Airways search authorities assist, it could be pressured to just accept circumstances. Necessities for airways receiving money grants embody persevering with to fly out and in of all U.S. airports that at present have business air service, and agreeing to keep away from involuntary furloughs of staff, each by means of the top of September. The help would additionally embody restrictions on govt compensation and inventory buybacks, in addition to suspension of dividend funds. Related strings are hooked up to authorities loans. United Airways Holdings Inc (UAL.O) and Delta Air Traces (DAL.N), the opposite two largest U.S. carriers, have expressed cautious optimism concerning the authorities help, whereas warning additional measures can be required to stabilize their companies. Reporting by Mike Spector and Jessica DiNapoli in New York. Further reporting by Tracy Rucinski in Chicago and David Shepardson in Washington; Modifying by Edwina GibbsOur Requirements:The Thomson Reuters Belief Rules.