Northwest Airlines investors concerned about transfer of shareholder value to creditors

By Lisa Kerner

Charlotte, N.C., May 15 - Northwest Airlines Corp. investors led by M.A.M. Investments Ltd. and Marathon Asset Management LLP believe the company has abandoned its public shareholders.

The investors, who beneficially own 2,567,819 shares, or 2.9% of the company's outstanding stock, also believe there may be "a plan or design to transfer value from stockholders to creditors and management by delaying a merger or similar transaction until after the company emerges from bankruptcy," according to a schedule 13D filing with the Securities and Exchange Commission.

Marathon LLP joined the unofficial Northwest equity committee in January. The committee, formed to protect holders of the company's stock, went to court and was successful in having the U.S. Trustee appoint an examiner to look into the investors' claims. The examiner had until May 14 to issue a written report regarding whether Northwest Airlines has undervalued the company, the filing stated.

Northwest, an Eagan, Minn.-based airline, filed for bankruptcy on Sept. 14, 2005. Its Chapter 11 case number is 05-17930.

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