NW Flight Attendants Win $65 Million Stock Bankruptcy Claim - 05/04/07

By Doug Cunningham

Northwest Airlines flight attendants have won a round in bankruptcy court - a $65 million claim on payment for preferred Series C stock. The Association of Flight Attendants - CWA had sued on behalf of the flight attendants who held the company Series C preferred stock and the court upheld the claim. Workers holding those stocks will now be compensated. That stock was issued by Northwest in an agreement with the Teamsters, who in 1993 was the union representing the flight attendants. Northwest tried to stiff the workers on the stock's value by declaring bankruptcy, but the workers have won a bankruptcy court claim. They're expected to get roughly 79 cents on the dollar.