kiwiandrew

NW Golden Share In CO : A Question?

Sun Mar 04, 2007 5:17 pm

I did a search and couldn't find anything that hadn't already been archived .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
 
bobnwa
Posts: 4463
Joined: Fri Dec 22, 2000 12:10 am

RE: NW Golden Share In CO : A Question?

Sun Mar 04, 2007 10:15 pm

The NWA Golden Share is CO is not affected by the bankruptcy. They will still own it.
 
nuggetsyl
Posts: 155
Joined: Wed May 24, 2006 11:46 pm

RE: NW Golden Share In CO : A Question?

Sun Mar 04, 2007 10:23 pm

Actully bankruptcy does affect the golden share.
 
michman
Posts: 605
Joined: Sat Dec 23, 2006 9:51 am

RE: NW Golden Share In CO : A Question?

Mon Mar 05, 2007 12:04 am

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]
 
bobnwa
Posts: 4463
Joined: Fri Dec 22, 2000 12:10 am

RE: NW Golden Share In CO : A Question?

Mon Mar 05, 2007 12:04 am

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

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

RE: NW Golden Share In CO : A Question?

Mon Mar 05, 2007 12:07 am

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
 
sllevin
Posts: 3312
Joined: Wed Jan 30, 2002 1:57 pm

RE: NW Golden Share In CO : A Question?

Mon Mar 05, 2007 4:00 am

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