FWAAA

The NYT just reported that NW may file Ch 11 as soon as tomorrow - that may have triggered the sell-off.

Right now, NW is just over a dollar.

CloudsBelow

And who would you think will lose the most with the stock crashing as it is? Maybe those same management people you know have "wished this would happen for 18 months". Brilliant analysis.

gldwebs

Here we go again...

Part of me says file already...get it over with...and save us from any more bankruptcy threads.

Anyone have the figure on the number of airlines out there right now (or percentage) in the US that have filed for bankruptcy protection at some point? How about in general how many US companies have used it to recover?

The world isn't coming to an end...and if it does, we still have status matching!!!

Blue Tiger

What happens if NW goes chapter 11 to my charged tickets for future flights?
Are the good on another airline ?or do I need to get a refund from Visa?

FWAAA

Same thing as at other airlines that have filed Ch 11, like UAL, USAir and all the others. If NW keeps flying, no problem.

If NW liquidates (very unlikely, IMO), then you have issues.

ByrdluvsAWACO

I would seriously have to expect AA to make a play for NW due to it's Asia rights. Of course, for something like this to pass with govt approval. I would suspect the DOJ would make AA sell the rest of NW's routes and the name.

Teeejay

In this evening's New York Times:

Northwest Airlines is preparing to seek bankruptcy protection as soon as Wednesday, people close to the company said today. Northwest is finishing the details of their bankruptcy cases, including the financing that it will require to operate under bankruptcy protection, these people said. That could cause delays, but the fundamental work of preparing each bankruptcy case is complete, they said.

A spokesman for Northwest, the nation's fifth-biggest airline, said today that the company had made no decision on a Chapter 11 filing. Northwest would file for Chapter 11 protection in United States Bankruptcy Court in New York.

Northwest and all the large domestic airlines have been hit hard by the spike in jet fuel prices in the aftermath of Hurricane Katrina, which interrupted production at refineries on the gulf coast.Even before the storm, however, airlines were already paying about 50 percent more for jet fuel this year than in 2004.

Northwest ndoes not have hedging contracts that would have allowed them to lock in the price of fuel, meaning it must immediately cover price increases in cash whenever they occur.Given that, and with its cash draining away in recent weeks, Northwest officials apparently decided to file quickly rather than wait any longer, people briefed on the airline's strategy said today.

Northwest's court filing would coincide with a strike by its mechanics union, which began Aug. 20. The airline has remained in operation using supervisors, contractors and 1,200 replacement workers as substitutes for striking members of the Aircraft Mechanics Fraternal Association.

Workers struck the airline over its demand for $176 million in wage and benefit cuts, part of $1.1 billion in concessions that it is seeking from its unions. Over the weekend, however, Northwest increased its demand to $203 million and said it now would need $1.4 billion in total cuts. And the airline said it could offer only about 1,080 jobs to the mechanics union, which represented 4,430 mechanics, cleaners and other workers at the airline before the strike.

The mechanics union walked away from bargaining, saying the airline's demands were too severe. The airline said it planned to give permanent jobs to some of the replacement workers starting today.Once companies seek bankruptcy protection, they can ask a bankruptcy court judge to set aside contracts and impose lower terms, unless agreements can be reached. Northwest is likely to seek the same $1.4 billion in cuts once its bankruptcy proceedings begin, the people briefed on the airline's strategy said today.

Northwest, based in Eagan, Minn., has major hubs in Minneapolis, Detroit and Memphis and is one of the biggest domestic carriers operating international routes. It is one of only two airlines with extensive routes throughout Asia. The other is United. Northwest operates in a code-sharing agreement with KLM, the Dutch airline, and it also shares flight designations with Delta and Continental.

For full story including info on Delta's imminent Chpt 11 filing:

http://www.nytimes.com/2005/09/13/bu...rtner=homepage

travelnutz

too bad I didn't get in at $1.30; OTOH I'm glad I didn't get in at the fairly recent $5+

FWAAA

Given that AA was willing to pay $60/sh for NW in 2000 (but balked at paying the alleged-demanded $100/sh), I would agree that AA might be interested in buying NW for $1.50 or so per share now.

Syracuse

I am numb to chapter 11 now after UA and US stays so many years in bankrupcy.

Seems chapter 11 means nothing in today's airline industry. Airlines not in bankrupcy will be rare animals soon.

BobH

Where there's smoke.... (from one of the wire services 9/13)

"Separately, Mesaba Aviation Inc., a regional feeder carrier for Northwest, said on Tuesday it had delivered a notice of default to Northwest after the airline failed to make an $18.7 million payment due on Monday.

Mesaba, a unit of MAIR Holdings Inc. (MAIR.O: Quote, Profile, Research) , said it had told Northwest it could "exercise available remedies" against Northwest if the payment was not made by Sept. 20."

Bob H

FWAAA

If NW has defaulted on this relatively small payment, expect all vendors to impose a cash-up-front policy on NW, which will hasten the bankruptcy filing.

cj001f

They've already substantial portions of their holdings.

wask

AA's finances aren't that good either. Personally I dont think AA can afford to buy NWA even at $1.50 now.

acregal

I would have thought that NW (and especially DL) would have already had this policy imposed (or that it is very close to happening, and this would hasten the decision to go into bankrupcy, something that we are now seeing).