Northwest Suit Calls Airport Contract Loan, Not Lease

Law360, New York (March 28, 2006, 12:00 AM EST) -- Beleaguered Northwest Airlines is looking to cancel $130 million in outstanding payments, filing a lawsuit against the Metropolitan Airports Commission of Minneapolis-St. Paul in hopes of voiding the massive debt.

The lawsuit alleges that the agreement between the carrier and the Commission should be classified under U.S. bankruptcy law as a loan, rather than a lease. This means that Northwest would not have to honor the agreement, freeing the airline from the multimillion dollar debt obligation.

But if the contract is treated like a lease, Northwest...
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