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Category: Northwest News
Date: 08 Jan 2006
Time: 18:20:13 -0500
Remote Name: 66.91.94.61
Northwest seeks extension of time to file bankruptcy plan MINNEAPOLIS (AP) — Northwest Airlines is asking for more time to file its plan to emerge from bankruptcy. The nation's fourth-largest airline said it hopes to have a plan by the end of 2006. Northwest had faced a Jan. 12 deadline for filing its own plan for emerging from bankruptcy. Without an extension, bankruptcy law allows Northwest's creditors to come up with their own plan. Northwest called its bankruptcy "among the largest and most complex cases ever filed." "Although much has already been accomplished in a few short months, much remains to be done before Northwest can proceed with confidence to propose a reorganization plan. This will take time and cannot be rushed," Northwest said in court papers filed late Friday. Northwest said its creditors support a six-month extension with the understanding that it will probably need another extension. Delta Air Lines Inc. filed for its own bankruptcy extension on Dec. 22, and Northwest said that day that it intended to seek an extension. Both airlines filed for bankruptcy protection on Sept. 14. UAL's United Airlines won multiple extensions for filing its reorganization plan. It aims to emerge next month after three years in bankruptcy court. Northwest may not generate "significant" money until 2009 or 2010, according to an earlier filing by Seabury Group LLC, which Northwest hired to advise it through bankruptcy. In its latest filing, Northwest said the shape of its business would depend on the cost savings it can get from workers, aircraft financiers, and pension and retiree obligations. Without knowing how those issues will be resolved, Northwest said it can't decide which markets to serve, which airplanes to fly, and which leases to reject. Northwest also said it has begun seeking debtor-in-possession financing. On Jan. 17, a trial is set to begin on Northwest's requests to reject union contracts and impose the company's own terms on its pilots, flight attendants, and ground workers. The airline and the unions have said they hope to make a deal before then.