HomeMy WebLinkAbout2006-11-27 07-030 ORDERCOUNCILACfION
Item No.
Date: November 27, 2006
Item/Subject:ORDER, Authorizing the Finance Director to Accept a Settlement for an
Unsecured Bankruptcy Claim Against Northwest Airlines, Inc.
Responsible Department: Airport
Commentary: Northwest Amines, an airline serving Bangor International Airport, filed for
bankruptcy on September 14, 2005. Northwest Airlines owes the airport $7,127.79. Recently,
the City has received two settlement offers from companies that purchase Ilablitles related to
companies in bankruptcy. One offer is for $.42 on the dollar; a second for $.50 on the dollar.
Both of these offers, which are time limited, compare favorably with the amounts received by
the City in other bankruptcy actions. Given that we have two competing offers and the
potential to receive further offers, staff requested that the Finance Committee authorize the
Finance Director to accept the most advantageous offer taking Into account the amount
proposed and the terms and conditions of the offer. The Finance Committee recommends this
approach to the full Council.
The attached order would authorize the Finance Director to accept the settlement offer deemed
most advantageous to the City for the Airports bankruptcy Claim against Northwest Airlines,
Inc., subject to the condition that such settlement be equal to or better than $.42 cents on the
dollar and that the terms and conditions of the settlement be approved by to City Solicitor.
Rebecca L Hupp
Department Head
Manager's Comments:
Recommend approval ae
City Manager
Associated Information:
Finance Director
Legal Approval:
Introduced for
Passage
_ First Reading
Referral
07 030
dasig=ito Ca Wr D'Errtco November 22, 2006
` CITY OF BANGOR
(TITLE.) ORDER, Authonzing the Finance Director to Accept a Settlement for an
Unsecured Bankruptcy Claim Against Northwest Airlines, Inc
BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT
the Finance Director Is hereby authorized to accept the settlement offer deemed most
advantageous to the Cry for the Airport's banlouptcy claim against Northwest Airlines,
Inc., subject to the condition that such settlement be equal to or better than $.42 cents
on the dollar and that the terms and conditions of the settlement be approved by the
City Solicitor.
IA CITY COOPCIL
Aovoher 27, 2006
motion Made and Cecooded
for PFasage
Pas d
CITY
* W-030
jRiLiJ wthoriaiv¢ the Pimvice Director
to Accept a Settlement for an Unsecured
BanlydntCV Claim AeainsL NOrtleest Airliner
Inc.