Northwest Airlines projects it’ll be worth $7B post-bankruptcy
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MINNEAPOLIS: Northwest Airlines laid out its plan to emerge from bankruptcy with a value of some $7 billion (€5.33 billion) and profits through 2010, although fuel prices and shareholders will have the final say. The financial plan for the nation’s fifth-largest airline showed its secured creditors would be paid in full, and unsecured creditors would get something like 74 cents on the dollar. Some creditors could get as much as 91 percent of what they are owed if they choose to buy additional shares in a stock offering that Northwest hopes will raise another $750 million (€570.9 million), according to the plan released Thursday. Historically, unsecured creditors in bankrupt airlines have received less than 10 cents on the dollar, said Standard & Poor’s airline analyst Philip Baggaley. The company said its stock offering would be for almost 27.78 million shares to be issued at $27 a share, underwritten by J.P. Morgan. Altogether Northwest plans to issue almost 272 million new shares, with most of the rest going to the unsecured creditors, and an unspecified number to managers. Northwest said it will have $8.75 billion (€6.66 billion) to $9.5 billion (€7.23 billion) in allowed general unsecured claims. |