Tentative Deal Gives Northwest Pilots $888M In Equity

Law360, New York (April 13, 2006, 12:00 AM EDT) -- Pilots for bankrupt Northwest Airlines Corp. will hold an $888 million claim to be paid in stock once the airline carrier emerges from its Chapter 11 proceedings, according to a tentative agreement reached between the union and the carrier.

The Air Line Pilots Association (ALPA) has until May 3 to vote on the agreement, which was penned by both sides to prevent a strike threatened earlier by Northwest’s pilots.

The claim represents about 13% of the $5 billion to $6 billion in unsecured claims the union...
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