IAM Claim at NWA Moves Forward

March 29, 2007 - A bankruptcy judge in New York said the court would hold a hearing on a pre-bankruptcy ruling that IAM members are entitled to repayment for sacrifices made before Northwest Airlines entered bankruptcy.

The IAM and NWA will jointly file a motion on an expedited basis to allow the $212 million Series C judgment before a scheduled May 16, 2007 hearing to confirm Northwest's plan of reorganization.

While Northwest stated in court that it supported allowing the Series C judgment claims, some creditors who were not a party to the 1993 agreement are trying to increase their stake in Northwest at the expense of Series C claim holders.

“We have waited years for Northwest to pay this debt, and the IAM will strongly fight any objections,” said District 143 President Steve Gordon. “Furthermore, if our Series C claim is not allowed, the IAM will vigorously object to Northwest's Plan of Reorganization, which would place the Company's expected May emergence from bankruptcy in jeopardy.”