Unsecured Creditors

MINNEAPOLIS -- Northwest Airlines Corp. said yesterday it expects to be worth roughly $7 billion when it emerges from bankruptcy this year, and will pay its unsecured creditors roughly three-quarters of what they are owed. Northwest said it expects to issue new common stock that would cover around 74 percent of what its unsecured creditors are owed. Some creditors could get as much as 91 percent of what they're owed if they choose to buy additional shares, which Northwest is hoping will raise an additional $750 million.

US Airways Group said it's ready to work with AMR Corp.'s American Airlines on a combination of the carriers that would be better for all stakeholders than American emerging from bankruptcy on its own. "We're encouraged now that we can work with American and the creditors to get this deal done," US Airways president Scott Kirby said at a Bank of America transportation conference Thursday in Boston. US Airways wants to take advantage of American's bankruptcy to craft a carrier that would pass United Continental Holdings Inc. as the world's largest.

US Airways Group said it's ready to work with AMR Corp.'s American Airlines on a combination of the carriers that would be better for all stakeholders than American emerging from bankruptcy on its own. "We're encouraged now that we can work with American and the creditors to get this deal done," US Airways president Scott Kirby said at a Bank of America transportation conference Thursday in Boston. US Airways wants to take advantage of American's bankruptcy to craft a carrier that would pass United Continental Holdings Inc. as the world's largest.

Utility company Dynegy Inc. said Wednesday that it reached an agreement with creditors that will allow the company move forward with bankruptcy proceedings for one of its subsidiaries. The agreement ends disputes over $2.5 billion in claims related to Dynegy Holdings LLC. The agreement will be filed as a settlement in the Dynegy Holdings Chapter 11 bankruptcy case, and must still be approved by the court and agreed to by other creditors who have not yet signed on to the deal. Dynegy Holdings LLC and four of its subsidiaries filed for bankruptcy protection on Nov. 7, with a plan to...

ATLANTA -- US Airways increased the pressure on Delta Air Lines' unsecured creditors to take its buyout offer by raising the bid yesterday nearly 20 percent to $10.3 billion. Whether the deal would survive regulatory scrutiny may be the deciding factor. The Tempe, Ariz.-based company also set a Feb. 1 deadline for certain conditions to be met or its entire bid would be revoked. The ball is now in the creditors' court. The question is whether they want to take the money US Airways is offering and run the risk of a long regulatory fight, or stick with Delta's plan to emerge from...

Utility company Dynegy Inc. said Wednesday that it reached an agreement with creditors that will allow the company move forward with bankruptcy proceedings for one of its subsidiaries. The agreement ends disputes over $2.5 billion in claims related to Dynegy Holdings LLC. The agreement will be filed as a settlement in the Dynegy Holdings Chapter 11 bankruptcy case, and must still be approved by the court and agreed to by other creditors who have not yet signed on to the deal. Dynegy Holdings LLC and four of its subsidiaries filed for bankruptcy protection on Nov. 7, with...

Washington Mutual Inc. cleared a significant obstacle to approval of its latest bankruptcy reorganization plan after reaching an agreement Thursday with dissident creditors who had voted against it. Attorneys hammered out the settlement involving creditors who bought certain WaMu securities that were later converted into preferred stock when regulators seized WMI's flagship bank in 2008 and sold its assets to JPMorgan Chase. The securities investors faced recovering far less as stockholders than debt holders.

A Delaware bankruptcy judge on Wednesday said she would approve a settlement between bank holding company Washington Mutual Inc. and a group of investors who had argued unsuccessfully that they held claims against it worth more than $300 million. The settlement involves holders of warrants that entitled them to shares of WMI common stock if the company won a lawsuit filed against the federal government 17 years ago over the government's treatment of Anchor Bank, which merged with an entity later acquired by Washington Mutual.

NEW YORK - A federal judge cleared the Star Tribune of Minneapolis yesterday to emerge from bankruptcy protection by the end of the month under a reorganization that puts Minnesota’s largest newspaper in the hands of its main lenders. Approval came despite efforts by lower-level creditors to require the newspaper to reveal the identity of its new publisher beforehand. A committee representing unsecured creditors, who will be all but wiped out in the reorganization, argued there was no way to assess the bankruptcy plan without knowing who will lead the newspaper.

WILMINGTON, Del. - A bankruptcy judge yesterday refused to grant more time to sell off the failed solar-panel maker Solyndra LLC. The company got a $500 million federal loan guarantee and was once highlighted by President Obama in support of his administration's economic policies. In 2009, Solyndra became the first renewable-energy company to receive a loan guarantee under a stimulus program to encourage green energy. But the Fremont, Calif., company filed for Chapter 11 bankruptcy protection this month and laid off its 1,100 employees, spurring...

Washington Mutual Inc. cleared a significant obstacle to approval of its latest bankruptcy reorganization plan after reaching an agreement Thursday with dissident creditors who had voted against it. Attorneys hammered out the settlement involving creditors who bought certain WaMu securities that were later converted into preferred stock when regulators seized WMI's flagship bank in 2008 and sold its assets to JPMorgan Chase. The securities investors faced recovering far less as stockholders than debt holders.

A Delaware bankruptcy judge on Wednesday said she would approve a settlement between bank holding company Washington Mutual Inc. and a group of investors who had argued unsuccessfully that they held claims against it worth more than $300 million. The settlement involves holders of warrants that entitled them to shares of WMI common stock if the company won a lawsuit filed against the federal government 17 years ago over the government's treatment of Anchor Bank, which merged with an entity later acquired by Washington Mutual.

WILMINGTON, Del. - A bankruptcy judge yesterday refused to grant more time to sell off the failed solar-panel maker Solyndra LLC. The company got a $500 million federal loan guarantee and was once highlighted by President Obama in support of his administration's economic policies. In 2009, Solyndra became the first renewable-energy company to receive a loan guarantee under a stimulus program to encourage green energy. But the Fremont, Calif., company filed for Chapter 11 bankruptcy protection this month and laid off its 1,100 employees, spurring...

NEW YORK - A federal judge cleared the Star Tribune of Minneapolis yesterday to emerge from bankruptcy protection by the end of the month under a reorganization that puts Minnesota’s largest newspaper in the hands of its main lenders. Approval came despite efforts by lower-level creditors to require the newspaper to reveal the identity of its new publisher beforehand. A committee representing unsecured creditors, who will be all but wiped out in the reorganization, argued there was no way to assess the bankruptcy plan without knowing who will lead the newspaper.

NEW YORK - The sale of Chrysler LLC to Italian automaker Fiat Group SpA is fair, has the backing of a majority of Chrysler's creditors, and should proceed quickly, Chrysler and other supporters of the sale said in court briefs filed yesterday. The groups include Chrysler, its finance arm, its unsecured creditors, the United Auto Workers, and Fiat. They are aiming to stop a group of three Indiana funds from blocking the proposed sale of Chrysler to Fiat. Chrysler is hoping to close the sale this week and emerge from bankruptcy protection shortly thereafter.

MINNEAPOLIS -- Northwest Airlines Corp. said yesterday it expects to be worth roughly $7 billion when it emerges from bankruptcy this year, and will pay its unsecured creditors roughly three-quarters of what they are owed. Northwest said it expects to issue new common stock that would cover around 74 percent of what its unsecured creditors are owed. Some creditors could get as much as 91 percent of what they're owed if they choose to buy additional shares, which Northwest is hoping will raise an additional $750 million.

NEW YORK - The sale of Chrysler LLC to Italian automaker Fiat Group SpA is fair, has the backing of a majority of Chrysler's creditors, and should proceed quickly, Chrysler and other supporters of the sale said in court briefs filed yesterday. The groups include Chrysler, its finance arm, its unsecured creditors, the United Auto Workers, and Fiat. They are aiming to stop a group of three Indiana funds from blocking the proposed sale of Chrysler to Fiat. Chrysler is hoping to close the sale this week and emerge from bankruptcy protection shortly thereafter.

Key provisions of financial regulation legislation: ? Federal Reserve would gain oversight over the largest, most interconnected financial firms, even nonbanks. The Fed could force large, interconnected firms to break up if they pose a “grave threat’’ to financial stability. Conversely, the Fed would lose day-to-day supervision of smaller bank holding companies — those with assets of $50 billion or less. Also, the roles of the 12 regional Fed banks would be diminished, with power shifting to the Washington-based board of governors.

ATLANTA -- US Airways increased the pressure on Delta Air Lines' unsecured creditors to take its buyout offer by raising the bid yesterday nearly 20 percent to $10.3 billion. Whether the deal would survive regulatory scrutiny may be the deciding factor. The Tempe, Ariz.-based company also set a Feb. 1 deadline for certain conditions to be met or its entire bid would be revoked. The ball is now in the creditors' court. The question is whether they want to take the money US Airways is offering and run the risk of a long regulatory fight, or stick with Delta's plan to emerge from...