Northwest Trustee Protests Ad Hoc Settlement

Law360, New York (May 29, 2007, 12:00 AM EDT) -- The U.S. Trustee in Northwest Airlines Corp.'s Chapter 11 case has objected to a settlement reached between the airline and its frequent sparring partner, the ad hoc committee, arguing that the deal is unwarranted.

On Friday, U.S. Trustee Diana G. Adams filed a notice of appeal with the U.S. Bankruptcy Court in Manhattan, seeking to overturn an order that approved Northwest's $5 million deal with the committee.

Earlier this month, a federal bankruptcy judge gave the green light to Northwest's amended reorganization plan in a move...
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