Court OK's Unions' Sale Of Northwest Claims

Law360, New York (April 5, 2007, 12:00 AM EDT) -- The court overseeing Northwest Airlines Corp.’s Chapter 11 case has given three labor unions the green light to sell an additional 20% of the unsecured claims they received from the airline in exchange for concessions.

U.S. Bankruptcy Judge Allan Gropper on Wednesday approved modifications to letters of agreement previously forged between each union and Northwest.

Those modifications allow the unions to cash in on an additional 20% of their claims before Northwest’s Chapter 11 plan becomes effective, the order says.

The judge’s order covers Northwest’s agreements...
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