From NWA's new website (the "legal information" part of which is not yet functional):

http://www.nwa-restructuring.com/


Under "for our suppliers"


"Dear Business Partner;

...Unfortunately, U.S. Bankruptcy law prohibits payment for goods and services received before today�s filing date. We regret any hardship this may present, but we sincerely hope that we can look forward and continue to work together in a positive fashion in the weeks and months ahead.

As you may know, the Bankruptcy Code provides a priority status for post-petition purchases � goods and services received after filing. We can and will pay for such post-petition purchases in the normal course of business, in accordance with the terms of our purchasing agreements."



In plain English - "Sorry we screwed you out of all that money we owed you, but its gone, you will never see it. Now as to why you should ever consider doing business with us again... for the next few months at least the court will force us to keep up payments on anything we purchase while everyone fights over the possibility of getting something for all the old debts. So contrary to your experience with us so far, you will get money for what we buy from you in the near future. We'll even throw in some Spinzels...."


Any alternative ways to read those two NWA paragraphs?

If I were a small business owner I would have stopped doing business with NWA a few months ago!

I gotta say, I find NW's disclosure to be fairly straightforward, and an accurate summary of what happens under banktruptcy law.

I agree completely.

And I like the OP's summary as well.

The bankruptcy laws generally provide that debts owed to unsecured creditors for goods/services rendered prior to filing are at the bottom of the priority ladder while bills for goods/services rendered after the filing are accorded much higher priority.

I gotta assume that DL and NW have been on a COD basis with many suppliers lately.

If not, I gotta question the sanity of those vendors.

You're right. Both NW and DL are really models in disclosure, particularly in the use of the web, for their customers and, I'm sure, their creditors.

That said, I think that now, with too much now in the hands of the lawyers and the Communications consultants, I think there's room to poke a little fun at the (mis)use of the language. Like this, from the message from Mr. Steenland to the elites:

" ... it does provide the most prudent means for a restructuring that will ensure the transformation of Northwest into a new-era carrier that is able to compete in the near term and well into the future."

B-school speak. In fact, if you click the "SPIN" button enough times on:

http://www2.owen.vanderbilt.edu/mike...mor/MBAWriter/

you might just be able to generate that very sentence.

I wonder if screwing the caterer will make FC meals go away. PS "new -era" may be speak for an AA buyout. Doug will have some resume. I blew 8 billion went bankrupt, demoralized all my employees and have no idea whats next.