Judge Greenlights Northwest's $1.4B DIP Loan

Law360, New York (August 9, 2006, 12:00 AM EDT) -- Pushing aside objections, a federal bankruptcy judge has given Northwest Airlines Corp. the go-ahead for a proposed $1.4 billion debtor-in-possession loan intended to help the embattled carrier claw its way out of bankruptcy.

On Tuesday, U.S. Bankruptcy Judge Allan Gropper approved the billion-dollar refinancing plan, allowing Northwest to restructure an existing $1.125 billion loan and take on an additional $250 million in debt to achieve greater liquidity.

The move lends a boost to the Minnesota airline, which had argued in court documents that the refinancing will...
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