Northwest gliding toward bankruptcy

[Eugene]

Turbulence at Northwest

Northwest gliding toward bankruptcy

Analysts predict airline will file for Chapter 11
before Oct. 17, when tougher laws take effect.

By Joel J. Smith / The Detroit News

Northwest Airlines may be winning the battle against striking
mechanics, but it's losing the war to stay out of bankruptcy.

Bankruptcy experts and industry analysts predict Northwest has little
choice but to file for Chapter 11 bankruptcy protection before a
tougher bankruptcy law takes effect Oct. 17.

Soaring fuel costs exacerbated by Hurricane Katrina essentially wiped
away gains made through intensive cost cutting and difficult labor
battles. Detroit Metropolitan Airport's largest carrier predicts it
will spend an additional $1.1 billion on fuel costs in 2005 over the
previous year.

<snip>

Striking Northwest Airlines mechanics said Saturday they expect to
make a deal with the airline, although striking workers probably
won't like it.

Full article: http://www.detnews.com/2005/business/0509/11/D01-309947.htm

[sabbat hunter]

1. according to a friend

of mine the top execs of the company are ripping it off big time. you would think the last thing they would want would be to go into bankruptcy so the courts can see the books.

and i thought the tougher bankruptcy laws only covered personal bankruptcy not businesses.

[TNDemo]

2. So will they be out of business or just restructured?

[sabbat hunter]

3. restructured

they probably will just restructure and get rid of their pension plan and make the federal gov't take it over.