After 19 months of sufferring bankruptcy, Northwest Airlines 
is all set to regain good health. It had successfully done a $2.5 billion annual cost savings. This is the first time in a half a decade when a leading US airline would not be bankrupt. Northwest had filed for Chapter 11 on September 14, 2005. A federal judge has ruled that it can exit the bankruptcy and the 11 day ‘administrative period’ has started, in which the airlines must notify the change in its status to its new shareholders and other parties. The US airlines now has an equity value of $7.8 billion and is issuing new shares as compensation to its creditors.
is all set to regain good health. It had successfully done a $2.5 billion annual cost savings. This is the first time in a half a decade when a leading US airline would not be bankrupt. Northwest had filed for Chapter 11 on September 14, 2005. A federal judge has ruled that it can exit the bankruptcy and the 11 day ‘administrative period’ has started, in which the airlines must notify the change in its status to its new shareholders and other parties. The US airlines now has an equity value of $7.8 billion and is issuing new shares as compensation to its creditors.For Complete IIPM Article, Click on IIPM Article
Source: IIPM Editorial, 2006
