North­west OKd to exit Chap­ter 11

Los Angeles Times - - Business -

North­west Air­lines Corp. re­ceived ap­proval to emerge from bank­ruptcy, free­ing it to move out of court pro­tec­tion from its cred­i­tors.

The Ea­gan, Minn.-based air­line, the na­tion’s fifth-largest, has spent more than 20 months in Chap­ter 11 cut­ting costs and slash­ing jobs in its re­or­ga­ni­za­tion ef­fort. It said it ex­pected to emerge from bank­ruptcy May 31.

Un­der the plan ap­proved by U.S. Bank­ruptcy Court Judge Al­lan Grop­per in New York, North­west’s se­cured cred­i­tors will be paid in full. Most un­se­cured cred­i­tors are ex­pected to be paid 66 cents to 83 cents on the dol­lar in new shares of the re­or­ga­nized com­pany.

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