Originally Posted by
757Driver
Right on the money. RD and Yak are right. This share remains in place in or out of BK and does not prevent CAL from being the acquirer.
You need to read the Master Alliance Agreement. Note that "change of control" gives Continental the right to terminate the agreement. A plan of reorganization (required for emergence from Chap 11) triggers a change of control.
Section 4: Master Alliance Agreement
iii Additional Termination Rights
(a) In the event of a NW Change of Control, each of CO and NW shall have the right to terminate the Master Alliance Agreement on 6 months' prior written notice, without liability or penalty to the other party.
(d) For purposes of this term sheet, a "Change of Control" with respect to either NW or CO shall mean any merger, reorganization, share exchange, consolidation, business combination, recapitalization, liquidation, dissolution or similar transaction involving NW or CO, or any sale or disposition of all or substantially all of NW's or CO's airline assets on a consolidated basis, involving, or the acquisition of beneficial ownership of 25% or more of the equity securities or voting power of NW or CO by, a third-party air carrier or carriers with annual passenger revenues in any such carrier's most recently completed fiscal year in excess of $1 billion, or an affiliate of any such third-party air carrier(s), or the execution of definitive agreements in respect of any such transaction.