'Success' Fees Nixed In Northwest Bankruptcy

Law360, New York (March 3, 2008, 12:00 AM EST) -- A bankruptcy judge has shot down a bid by consultants to creditors of Northwest Airlines Corp. for almost $4.3 million in so-called success fees, saying the bonuses were not justified.

In denying the fee requests of financial advisors Lazard Freres & Co. and FTI Consulting Inc., Judge Cecelia Morris of the U.S. Bankruptcy Court for the Southern District of New York said Friday it was unclear whether the successes claimed by the consultants were “solely attributable to either professional.”

“The court is apprehensive, under the facts...
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