Trustee Balks At Frontier's Severance Plan

Law360, New York (May 29, 2008, 12:00 AM EDT) -- The U.S. trustee in Frontier Airline Holdings Inc.'s Chapter 11 case has objected to the airline's proposed severance agreement for its senior executives, saying it is too early in the case to assess the need for such a plan.

In a motion filed Wednesday in the U.S. Bankruptcy Court for the Southern District of New York, a lawyer for Trustee Diana G. Adams argues that Frontier has not met its burden of proof and that consideration of severance deals for higher-ups is premature.

“The debtors allege...
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