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...
To view the full article, register now.

Law360 UK

UK Financial Services

Read Our Latest UK Legal News & Analysis

Financial Services Law360 UK and Insurance Law360 UK provide breaking news and in-depth analysis on U.K. and European Union regulation, enforcement, legislation, and litigation involving banks, investment firms, insurers, and more.