Legal Fees Rack Up for Airline Bankruptcies; Delta, Northwest Lawyers Might Receive $276 Million

Summary

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As Delta and Northwest press employees to take pay and benefit cuts, their lawyers and consultants are asking bankruptcy court judges to approve $59 million in fees and expenses for up to 41/2 months of work.

Complicated bankruptcy cases commonly generate big fees for lawyers - so it might not be surprising that, by the time the two airlines exit Chapter 11, the tab could be $276 million or more. But such bills also routinely draw criticism from employees, creditors and other parties - and with Atlanta-based Delta Air Lines Inc. and Eagan, Minn.-based Northwest Airlines Corp. asking employees for wage concessions, legal fees are indeed an issue.

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Extract

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Legal Fees Rack Up for Airline Bankruptcies; Delta, Northwest Lawyers Might Receive $276 Million

"It's hard for us to fa...

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