$4.3 million bonuses denied for Northwest bankruptcy
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A bankruptcy judge has rejected almost $4.3 million in "success fees" for consultants in the Northwest Airlines bankruptcy.
Lazard Freres and Company and FTI Consulting worked as financial advisors to the Committee of Unsecured Creditors in Northwest's case. The airline emerged from bankruptcy protection on May 31st.
Lazard got $5.6 million in fees and expenses. But it wanted another $3.25 million as a "completion fee." FTI got almost $7 million in fees and expenses and sought another $1 million completion fee.
U.S. Bankruptcy Judge Cecelia G. Morris in New York ruled that Lazard and FTI both knew they had the right to request a bonus at the end of the case -- and that there was no guarantee it would be awarded.
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