Shareholders Object to Northwest's Chapter 11 Plan

Law360, New York (May 9, 2007, 12:00 AM EDT) -- A group of Northwest Airlines Corp. shareholders has asked a bankruptcy court to halt the airline’s plans to emerge from Chapter 11, arguing the reorganization plan cheats them of billions of dollars.

In an objection filed Monday, the Ad Hoc Equity Committee asked the U.S. Bankruptcy Court in Manhattan to deny confirmation of the plan, saying it failed to maximize the value of the airline’s stock, and would overpay management and unsecured creditors.

Members of the shareholder committee, which comprises several hedge funds that own 19...
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