Jan 3, 2006 10:27 pm US/Central
NWA Asks For Bankruptcy Plan Extension
Minneapolis (AP) ―
Northwest Airlines Corp. is asking for an extension of the deadline for filing 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 as 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 a court papers filed late Friday.
Northwest said its creditors support a six-month extension with the understanding that Northwest 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 Corp.'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.
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Northwest Airlines was founded in 1926, when it began carrying air mail from the Twin Cities to Chicago on a pair of rented, open-cockpit biplanes. The company began transporting ticketed passengers almost a year later.
(© 2009 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
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