Northwest Wants Court To Penalize Equity Holders

Law360, New York (February 12, 2007, 12:00 AM EST) -- Northwest Airlines has asked a bankruptcy judge to impose civil sanctions against the ad hoc committee of equity security holders, saying the group has disregarded the court’s “explicit orders” to stay discovery when it issued subpoenas to learn more about the bankrupt airline’s merger prospects and financial status.

The airline argued in court documents filed Friday in the U.S. Bankruptcy Court for the Southern District of New York that the court has said no discovery can start until after the airline files its disclosure statement, which...
To view the full article, register now.