Forbes- Northwest Airlines Corp. has made a deal with a group of shareholders that had opposed its bankruptcy reorganization plan, the airline said in a court filing on Monday.<\/p>\n
The deal with the ad hoc equity committee resolves one of the last potential speed bumps along Northwest’s road to exit bankruptcy next month. A hearing to approve its reorganization plan, and the settlement with the shareholder group, is set to begin Wednesday.<\/p>\n
The settlement, reached on Friday, calls for Eagan-based Northwest to pay up to $5 million in legal costs for the shareholders. In exchange, the shareholders will withdraw their objection to Northwest’s reorganization plan, including an objection to unsecured claims given to unions in exchange for pay cuts.<\/p>\n
U.S. Bankruptcy Judge Allan Gropper in New York wrote in a court filing that he will be looking for evidence that the shareholders made a “substantial contribution” to the case to justify having their attorneys’ fees paid.<\/p>\n
Shareholder attorney David Rosner did not return a phone message from The Associated Press.<\/p>\n