In re Northwest Airlines Corp.
Sep
05
2008
Ruling
Debtor's objection to liquidated damages claim based on rejected lease sustained as claim was unreasonable.
Procedural posture
The reorganized debtors, who operated a commercial airline, filed an objection to two proofs of claim filed by a lessor. The claims arose in connection with the debtors' rejection of the leases for two aircraft. The lessor claimed damages of $7.5 million on each lease, based in part on a liquidated damages clause in the lease that required a fixed and non-declining stipulated loss value (SLV).
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Court
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