Northwest OKd to exit Chapter 11
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.