Northwest Airlines' bankruptcy is paying off quite handsomely for lawyers and consultants working on the case.
They racked up nearly $15 million in fees during the first 15 weeks or so of the airline's bankruptcy reorganization.
A hearing on their requests for payment will be held in New York on March 7.
Cadwalader, Wickersham & Taft (CWT), the airline's lead law firm in the case, billed Northwest for $6.4 million in fees and $432,000 in expenses for services rendered from Sept. 14, 2005, when Northwest filed for bankruptcy, to Dec. 31 of last year.
CWT has advised Northwest about how to deal with leases, contracts, vendors, creditors and other parties and issues.
The law firm's hourly charges ranged from $100 for a paralegal to $800 for a partner. Such hourly rates are typical in bankruptcy cases.
According to court documents, CWT partner Bruce Zirinsky billed Northwest for 706.8 hours at $800 an hour. That works out to a total of $565,440.
Eagan-based Northwest hopes to soon wrap up its drive to cut its annual labor costs by $1.4 billion, perhaps this week.
If it can't bargain the giveback deals it says it needs from its flight attendants and pilots, it wants the judge overseeing its bankruptcy to enable it to impose contracts on them. The judge could rule on the contracts Friday. Unions representing pilots and flight attendants began voting this week on whether to authorize a strike if Northwest imposes contracts.
Meanwhile, Northwest says it has cut its annual nonlabor costs by $1.7 billion — and it's looking to squeeze those costs even more.
Among other firms seeking fees: Huron Consulting, which has been advising Northwest about its reorganization, is seeking $1 million. Managing director James Lukenda reported he spent 252 hours on the Northwest case at $600 an hour. Total tab: $151,200.
Another consulting firm, Seabury Group, wants $1.3 million. It says it has been billing Northwest at "discounted" hourly rates of $171 to $513.
Other billers and their fees so far include Briggs and Morgan, $290,000; Dorsey & Whitney, $390,000; Ernst & Young LLP, $840,000; Arnold & Porter LLP, $1.1 million.
Martin Moylan can be reached at [email protected] or 651-228-5479.
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