DISCLAIMER

 

07-0243R


RESOLUTION PERTAINING TO CITY INTERESTS IN BANKRUPTCY CLAIMS.

BY COUNCILOR STEWART:

     RESOLVED, that the proper city officials are authorized to negotiate with involved parties for a favorable disposition of the city’s claims in the bankruptcy of Northwest Airlines (Case 05-17930 ALG, Southern District of New York); to approve, execute and implement any document or agreement required in the settlement or resolution of such claims or related fees or transactions, including any agreement with state of Minnesota; and to take such actions, including the execution of documents, including any settlement agreement, and the giving of notice, as are necessary to effect the redemption of bonds relating to the Duluth maintenance base, on the condition that:

     (a)  The settlement or resolution is at least as favorable to the city as the state’s settlement or resolution is favorable to the state;

     (b)  The settlement provides for payment in full of the city’s claim in the amount of $235,577.92 related to the Duluth maintenance base;

     (c)  The settlement provides that city’s debt for the Duluth maintenance base will be fully satisfied;

     (d)  The settlement provides that the city’s obligations to the state of Minnesota, to bondholders, and to other parties to the documents, all relating to the bond financing of the Duluth maintenance base will be fully satisfied or settled.


STATEMENT OF PURPOSE:  This resolution authorizes the city to settle its claims in the Northwest Airlines bankruptcy. The city is working with the state on this and may need pre-authorization in order to act within bankruptcy deadlines.