NewPage Creditors' Bid For Pricy Consultants Shut Down

Law360, New York (December 2, 2011, 8:06 PM EST) -- Unsecured creditors of bankrupt paper company NewPage Corp. cannot hire financial advisory firm Alvarez & Marsal North America LLC for consulting work in the case, a Delaware judge ruled Thursday, saying that the high-profile firm is too costly.

Judge Kevin Gross denied the unsecured creditors committee's retention application without prejudice, siding with NewPage's contention that the committee of unsecured creditors is low on the priority list for repayment and simply does not have the money to spend on advisory firms.

“The committee's prospects for any recovery...
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