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In the Northwest Airlines (NWACQ) bankruptcy, hedge funds such as Owl Creek Asset Management have bought Northwest equity and shorted the bonds, a reversal of the common assumption that equity holders are the losers in bankruptcy cases. Owl Creek is betting that Northwest, which filed for bankruptcy protection in 2005, will be acquired, giving it another shot at life and boosting the value of its stock. The shares, which now trade over-the-counter, once traded above $50. Last week, they hit a low of 8¢, and finished at 16¢ on May 7. Owl Creek declined comment.