This article from NYTimes.com has been sent to you by psa188@xxxxxxxxx /-------------------- advertisement -----------------------\ Explore more of Starbucks at Starbucks.com. http://www.starbucks.com/default.asp?ci=1015 \----------------------------------------------------------/ Northwest Waiting to Buy Back '93 Stock August 1, 2003 By THE ASSOCIATED PRESS Filed at 2:07 p.m. ET MINNEAPOLIS (AP) -- Northwest Airlines said Friday it won't immediately buy back $226 million in stock issued to employees in return for wage concessions that kept the airline out of bankruptcy in 1993. The airline said it's not legally able to buy the stock back right now. The airline's unions had filed a lawsuit to force the company to abide by the agreement. ``We recognize the valuable contributions our employees made to the company during the 1993-1996 wage reduction period and acknowledge the company's obligation to buy back the Series C Preferred Stock. We want to do so as soon as possible,'' Northwest said in a statement. The statement said ``legal restrictions'' under Delaware law prevented the company from buying back the shares. The company said the stock would pay a 12 percent annual dividend based on the $46.96 share buyback price until it is repurchased. That's one of several remedies called for in the 1993 agreement if Northwest was unable to buy the stock back by Friday's date. Some union leaders were angry. ``We have people who are laid off and were counting on this repayment money,'' said Jim Atkinson, president of Aircraft Mechanics Fraternal Association Local 33. Atkinson said he was particularly bothered because Northwest's board approved bonuses for executives last year, ``but when it comes to repaying a long-standing debt to employees, they suddenly plead poverty.'' Jose Arturo Ibarra, vice president of the Professional Flight Attendant Association, said Northwest's decision is disappointing -- but the 12 percent dividend helps. ``That's a higher return than anywhere else,'' said Ibarra, who has been a Northwest flight attendant himself since 1980. ``That's a good return for retirement.'' A Northwest spokesman did not immediately return a phone message left by The Associated Press. Ground workers and flight attendants have held the preferred shares since 1993, when they were given stock equal to a dollar-for-dollar return on their concessions. In July, Northwest reported what it called the worst quarter in the company's history. Government security reimbursements gave it a profit of $227 million. But excluding unusual items, the company lost $160 million. Northwest said it has been hurt by a travel downturn sine the Sept. 11, 2001 terrorist attacks, and higher fuel costs. Northwest is in contract negotiations with its pilots and mechanics. The company has said it wants to reduce labor costs by $1 billion a year. http://www.nytimes.com/aponline/business/AP-Northwest-Share-Buyback.html?ex=1060765719&ei=1&en=1316784968323aa3 --------------------------------- Get Home Delivery of The New York Times Newspaper. Imagine reading The New York Times any time & anywhere you like! Leisurely catch up on events & expand your horizons. Enjoy now for 50% off Home Delivery! Click here: http://www.nytimes.com/ads/nytcirc/index.html HOW TO ADVERTISE --------------------------------- For information on advertising in e-mail newsletters or other creative advertising opportunities with The New York Times on the Web, please contact onlinesales@xxxxxxxxxxx or visit our online media kit at http://www.nytimes.com/adinfo For general information about NYTimes.com, write to help@xxxxxxxxxxxx Copyright 2003 The New York Times Company