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...
To view the full article, register now.

Law360 UK

UK Financial Services

Read Our Latest UK Legal News & Analysis

Financial Services Law360 UK and Insurance Law360 UK provide breaking news and in-depth analysis on U.K. and European Union regulation, enforcement, legislation, and litigation involving banks, investment firms, insurers, and more.