With a 97% approval from its creditors Northwest Airlines is set to emerge from bankruptcy protection in June. Creditors for the airline overwhelmingly accepted the reorganization plan by Northwest Airlines, a critical component in the airlines plan to emerge from bankruptcy.
Most of Northwest's unsecured creditors are expected to be paid between $0.66 and $0.83, depending on the final amount of its debts, to be paid in shares in the newly reorganized company.
"We appreciate our creditors' confidence in the Northwest plan of reorganization, which provides creditors with a stake in Northwest Airlines going forward and represents a substantial recovery on their unsecured claims," Northwest President and CEO Doug Steenland said in a prepared statement.
However, the unions at the airline are objecting to their reorganization plan. The top three unions are critical of the plan that gives the executives 5% of the company, citing it's too rich. Most of the objections are coming as a result of statements being released which gives CEO Doug Steenland $26.6 million in restricted shares and options after the carrier exits bankruptcy.
Pilots called the payout an "incredible grab of value by a few top executives."
Just another reason to not like the management at a company that is already plagued with poor relations between management and the employees.
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