Northwest files Chapter 11 progress

15th Jan 2007

Northwest Airlines
Corporation, and certain of
its subsidiaries have filed their joint Chapter 11 plan of
reorganization with the United States Bankruptcy Court for the
Southern District of New York, which is overseeing its reorganization.The plan provides for the treatment of claims of creditors, the
implementation of agreements with key labor groups, lenders and
suppliers, as well as the raising of new equity capital for Northwest.,

  Commenting on the plan, Doug Steenland, Northwest Airlines
president and chief executive officer, said, “The filing of our plan
of reorganization is a key milestone in our ongoing restructuring
efforts and begins Northwest’s emergence from Chapter 11 protection.”,

  “Over the past 16 months, we have achieved the three key
objectives we set for our restructuring: we have removed $2.4 billion
in annual costs from the business, we have restructured our fleet and
entered into new aircraft purchase agreements, and we have
significantly strengthened our balance sheet. We remain on track to
report a pre-tax profit for the full year 2006.”,

  Steenland continued, “By returning to profitability, we will
enable our employees, whose sacrifices have been essential to the
successful reorganization of Northwest, to share in its success. For
our employees, a healthy Northwest will ensure a future of job
security, pension and retirement benefits, profit-sharing payments and
access to a valuable claim.”,


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