Originally Posted by
J.Edward
When NW emerges from BK the current stock will be invalidated and new shares issued. As such a new "Major Carrier" (or whatever incarnation NW takes after BK) will acquire "beneficial Ownership of 25% or more of the Capital Stock or Voting Power of a Northwest Affected Company". And while the new company is still "Northwest" it is not the same NW, with the same owners, that went into BK.
I'm not following your argument. The New NW shareholders (NW's current creditors and whoever buys stock in the New NW IPO) will own New NW's stock after it emerges from bankruptcy, not New NW itself. Besides, even if New NW itself owned all the stock of Old NW as a result of the reorganization, New NW is not considered a Major Carrier under the terms of the preferred stock. From the
other post:
“Major Carrier” means an air carrier (other than the Corporation and its successors and any Subsidiary thereof or Northwest Airlines Corporation and its successors and any Subsidiary thereof), the annual passenger revenues of which (including its Subsidiaries’ predecessor entities) for the most recently completed fiscal year for which audited financial statements are available are in excess of the Revenue Threshold as of the date of determination (or the U.S. dollar equivalent thereof).
The golden share isn't going away as a result of the bankruptcy unless Morgan Stanley is buying up NW stock on behalf of another Major Carrier or to ultimately force industry consolidation. I've seen no media reports indicating that's what's going on - yet.