Northwest Proposes Changes To DIP Financing

Law360, New York (February 28, 2007, 12:00 AM EST) -- Northwest Airlines has asked the bankruptcy court for permission to make amendments to its $1.2 billion loan agreement, saying the changes would reduce the cost of borrowing funds in exchange for accelerated payment of some deferred fees.

In a motion filed Friday in the U.S. Bankruptcy Court for the Southern District of New York, attorneys for the debtors said the airline is choosing to amend the debtors-in-possession agreement “instead of pursing a pay-off and refinancing … in order to maintain existing terms and conditions while saving...
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