Judge Gropper's Northwest Airlines Rulings Send Hedge Funds Back to the Drawing Board to Devise Alternative Litigation Strategies
Be sure to read Bob Eisenbach's excellent up-to-the-minute summaries (here and here) on his In the (Red) Business Bankruptcy Blog of Judge Gropper's rulings in the Northwest Airlines bankruptcy case (recently filed plan and disclosure statement are here).
As reported by Bob, Judge Gropper in this first opinion dated 2-26-07 required hedge funds that were members of an ad hoc committee of equity holders to disclose the most holy of grails (i.e., the specific amounts held and how much was paid for each member's interests in the debtors), and in this second opinion dated 3-9-07 refused to let them submit this information under seal.
Bob has done a great public service by pulling together the disparate pieces of this rapidly developing story. Thanks, Bob!
© Steve Jakubowski 2007
Thanks very much for the kind words. These decisions are significant ones and it will be very interesting to follow how they impact this and future cases.