Northwest Looks To Finalize $1.4B DIP Loan

Law360, New York (July 19, 2006, 12:00 AM EDT) -- Northwest Airlines Corp. filed a motion Tuesday with the U.S. Bankruptcy Court in Manhattan, requesting the approval of a $1.375 billion debtor-in-possession loan it needs to emerge from bankruptcy.

Funding for the loan would come from Citigroup Inc. and other lenders, and includes about $250 million in net liquidity.

The money would also pay off up to $1.125 billion in pre-bankruptcy loans. The airline, for example, owes $650 million to U.S. Bank and $370 million to the Pension Benefit Guaranty Corp.

“The credit provided under the...
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