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NW Golden Share In CO : A Question?  
User currently offlineKiwiandrew From New Zealand, joined Jun 2005, 8488 posts, RR: 14
Posted (7 years 1 month 2 weeks 13 hours ago) and read 2224 times:
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I did a search and couldn't find anything that hadn't already been archived .

My question is a bit complicated so please hang in there - particularly if you have any in depth knowledge of America's weird bankruptcy laws .


NW's "golden share" apparently becomes invalid if NW ownership changes
( according to several threads I have read)

NW's current stock becomes worthless when the airline emerges from C11 .
( let's just assume it does emerge, you can start your own thread if you want to argue that point )


New NW stock will be issued when the airline emerges and will go to the creditors (?)

my question is , assuming that I have understood the above correctly , is :

does the cancellation of old stock and issue of new stock to completely different stockholders constitute a 'change of ownership' and therefore release CO from the 'golden share' ?

Apologies if this question has been asked before , I had a look at a lot of archived threads and could not see this question or it's answer anywhere


Moderation in all things ... including moderation ;-)
6 replies: All unread, jump to last
 
User currently offlineBobnwa From United States of America, joined Dec 2000, 6339 posts, RR: 9
Reply 1, posted (7 years 1 month 2 weeks 8 hours ago) and read 2172 times:

The NWA Golden Share is CO is not affected by the bankruptcy. They will still own it.

User currently offlineNuggetsyl From United States of America, joined May 2006, 211 posts, RR: 0
Reply 2, posted (7 years 1 month 2 weeks 8 hours ago) and read 2152 times:

Actully bankruptcy does affect the golden share.

User currently offlineMichman From United States of America, joined Dec 2006, 466 posts, RR: 0
Reply 3, posted (7 years 1 month 2 weeks 6 hours ago) and read 2080 times:

Bankruptcy does not affect the golden share and it remains in effect until 2025.
The change of ownership of NW MUST involve not just new investors, but also another
airline. As long as another airline does not take an ownership interest in NW,
the golden share remains in effect. This is clearly spelled out in the revised
terms of the golden share. Unfortunately, many continue to refer to the original
terms which were somewhat murky.

[Edited 2007-03-04 16:05:29]

[Edited 2007-03-04 16:06:13]

User currently offlineBobnwa From United States of America, joined Dec 2000, 6339 posts, RR: 9
Reply 4, posted (7 years 1 month 2 weeks 6 hours ago) and read 2080 times:

Quoting Nuggetsyl (Reply 2):
Actully bankruptcy does affect the golden share.

Are you going to leave us hanging until you are asked, how?


User currently offlineKiwiandrew From New Zealand, joined Jun 2005, 8488 posts, RR: 14
Reply 5, posted (7 years 1 month 2 weeks 6 hours ago) and read 2074 times:
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Quoting Michman (Reply 3):
The change of ownership of NW MUST involve not just new investors, but also another
airline.

Thanks Michman

that was the crucial piece of information I was missing - now it makes sense Big grin



Moderation in all things ... including moderation ;-)
User currently offlineSllevin From United States of America, joined Jan 2002, 3376 posts, RR: 6
Reply 6, posted (7 years 1 month 2 weeks 3 hours ago) and read 1931 times:

Quoting Kiwiandrew (Thread starter):
NW's current stock becomes worthless when the airline emerges from C11 .

The Golden Share is uneffected unless the change of control (which a bankruptcy is) means that another major airline (defined as $1 billion in revenue) gains at least 25% control of NW.

Steve


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