Northwest Airlines Corp.

Minneapolis, MN: (Aug-15-07) In a settlement reached between Northwest Airlines Corp. and bondholders who assisted in financing an expansion at Minneapolis-St. Paul International Airport, a federal judge approved a deal that would give the bondholders a $163.7 million unsecured claim against Eagan-based Northwest. Judge Allan Gropper of the US Bankruptcy Court in New York stated that additionally Northwest Airlines will grant a $71.6 million unsecured claim to the Metropolitan Airports Commission, the issuer of the bond. As per the terms of the agreement, Northwest will retain the right to use facilities at the airport, such as baggage-claim areas and office space, and the carrier will be relieved of all future payments under the bonds. In 2006 Northwest filed a lawsuit, in order to limit its obligations to the bondholders and the airports commission. The recent ruling will settle that suit as well. After the commission issued more than $130 million in bonds, which mature in 2025, to finance improvements to the airport, Northwest said it unconditionally guaranteed payment of principal and interest on the bonds as they became due. [MINNEAPOLIS ST. PAUL BUSINESS JOURNAL: BONSHOLDERS SETTLEMENT]

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Published on Aug-17-07