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NEW YORK (AP) - A judge ruled Wednesday that Northwest Airlines Corp. must redeem around $226 million in preferred shares of stock the airline issued to employees more than 10 years ago as part of wage-cut negotiations.
The airline had agreed to redeem the preferred stock in 2003. But when redemption time came, the airline faced renewed financial troubles and decided it would be impossible to do so. The unions representing flight attendants and ground workers sued.
"This is an important decision ... that vindicates the rights of employees who devoted many years to this airline, in good times and in bad," said Howard Graff, a lawyer who represented the unions. "There's no principle distinction between this obligation and those to its lenders and suppliers."
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