Northwest Airlines files bankruptcy reorganization plan
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MINNEAPOLIS: Northwest Airlines Corp. filed its bankruptcy reorganization plan on Friday, another step toward its goal of emerging from Chapter 11 protection in the second quarter of this year. The owner of the fifth biggest U.S. air carrier said its shares, which had continued to trade over the counter, would be canceled once it emerges from bankruptcy. It said its unsecured creditors would not be paid in full. But the 66-page plan did not address perhaps the largest question surrounding Northwest right now: Whether it will merge with another airline. Northwest has hired an advisory firm but has not commented publicly on its plans. The plan also omitted several schedules, including management compensation. Northwest’s bankruptcy judge in New York extended until Feb. 15 its time to file disclosures related to the plan. Northwest had filed for Chapter 11 protection on Sept. 14, 2005, and had until Tuesday to file its own reorganization plan. After that, other parties such as creditors could have proposed their own reorganization plan. |