Northwest Airlines

La Crosse, WI: (May-14-07) A shareholders lawsuit was filed against Northwest Airlines in a bid to oppose the airline's bankruptcy reorganization plan. The shareholders suit claimed there should be some money left over for them, but Northwest's bankruptcy plan calls for them to receive nothing. In a settlement reached, Northwest agreed to pay up to $5 million in legal costs for the shareholders. In exchange, as part of the settlement agreement, the shareholders will withdraw their objection to Northwest's reorganization plan, including an objection to unsecured claims given to unions in exchange for pay cuts. The deal resolves one of the last potential speed bumps along Northwest's road to exit bankruptcy, as well as resolves any further litigation. [WKBT: SHAREHOLDER LAWSUIT]

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Published on May-15-07