Northwest Says Time Short to Avoid Chapter 11
- Share via
Northwest Airlines Corp. warned that it was running out of time to avoid a bankruptcy filing because of rising fuel prices, and that it would lose as much as $400 million this quarter. Company pilots said they would negotiate a new round of pay cuts.
The carrier said in a filing with the Securities and Exchange Commission that its cash had fallen to $1.7 billion as of Wednesday, down from $2.1 billion on June 30. Some of the decrease was due to holdbacks required by the company that processes its credit card transactions, a situation that has also squeezed rival Delta Air Lines Inc. in recent weeks.
Northwest said its third-quarter loss would be $350 million to $400 million, but possibly worse depending on the financial effect of Hurricane Katrina.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
