For those of you still holding shares...
Series C Claim Paid in Common Stock
May 31, 2007
Northwest Airlines emerged from bankruptcy this morning when the Plan of Reorganization under Chapter 11 of the Bankruptcy Code became effective. In accordance with the Plan, NWA Corp. will issue 4,704,373 shares of common stock to approximately 23,427 participants who held Series C preferred stock as of August 1, 2003. The common stock is issued as settlement of the $212,520,140.82 claim won by the IAM in court for the Company’s failure to redeem the Series C on August 1, 2003.
The 4.7 million shares represents the IAM’s portion of all newly-issued common shares available to satisfy all unsecured claims after holding back 17% which may be necessary to pay those claims currently in dispute. In other words, if the court allows all disputed claims there will be no further allocation to Series C claim holders. If all or some of the disputed claims are disallowed, the IAM Series C participants will receive additional shares of common stock at some point in the future when disputed claims are resolved.
As of August 1, 2003, there were 3,670,886 shares of Series C in the IAM Trust and 28,662 shares held by 277 participants outside the Trust. For every share of Series C held, the participant will receive 1.279 shares of common stock. If for example, an individual had 150 shares of Series C in his/her account on August 1, 2003, that person would be entitled to 191.86 shares of new common stock.
Over the past 24 hours the IAM, the IAM Trustee for the Series C stock and the Company have been negotiating an allocation agreement, which will facilitate the distribution of the common stock to participants. It is anticipated that the shares will be deposited into each participant’s 401(k) account by Saturday, June 2, 2007. On Monday, June 4 participants should be free to either hold their shares or sell their shares at the market price. The individual will have the sole responsibility to decide what to do with their shares. Remember, the normal 401(k) rules regarding penalties and loans apply. We recommend consulting your personal financial advisor.
For the 277 participants outside the 401(k) Plan, their shares will be deposited in an account set up with the distribution agent. If you are one of these individuals you will be receiving communications directly from Computershare, the distribution agent.
Look for additional information that will be furnished in the next few days. This information will provide greater detail on the transaction and further explain your rights and options under the 401(k) Plan.
Series C Claim Paid in Common Stock
May 31, 2007
Northwest Airlines emerged from bankruptcy this morning when the Plan of Reorganization under Chapter 11 of the Bankruptcy Code became effective. In accordance with the Plan, NWA Corp. will issue 4,704,373 shares of common stock to approximately 23,427 participants who held Series C preferred stock as of August 1, 2003. The common stock is issued as settlement of the $212,520,140.82 claim won by the IAM in court for the Company’s failure to redeem the Series C on August 1, 2003.
The 4.7 million shares represents the IAM’s portion of all newly-issued common shares available to satisfy all unsecured claims after holding back 17% which may be necessary to pay those claims currently in dispute. In other words, if the court allows all disputed claims there will be no further allocation to Series C claim holders. If all or some of the disputed claims are disallowed, the IAM Series C participants will receive additional shares of common stock at some point in the future when disputed claims are resolved.
As of August 1, 2003, there were 3,670,886 shares of Series C in the IAM Trust and 28,662 shares held by 277 participants outside the Trust. For every share of Series C held, the participant will receive 1.279 shares of common stock. If for example, an individual had 150 shares of Series C in his/her account on August 1, 2003, that person would be entitled to 191.86 shares of new common stock.
Over the past 24 hours the IAM, the IAM Trustee for the Series C stock and the Company have been negotiating an allocation agreement, which will facilitate the distribution of the common stock to participants. It is anticipated that the shares will be deposited into each participant’s 401(k) account by Saturday, June 2, 2007. On Monday, June 4 participants should be free to either hold their shares or sell their shares at the market price. The individual will have the sole responsibility to decide what to do with their shares. Remember, the normal 401(k) rules regarding penalties and loans apply. We recommend consulting your personal financial advisor.
For the 277 participants outside the 401(k) Plan, their shares will be deposited in an account set up with the distribution agent. If you are one of these individuals you will be receiving communications directly from Computershare, the distribution agent.
Look for additional information that will be furnished in the next few days. This information will provide greater detail on the transaction and further explain your rights and options under the 401(k) Plan.
Wonder what the news will be 7/31/07 from ScabAir? Cancelled flights in June?
