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NORTHWEST AIRLINES CORP
|
10-K
Mar 2, 5:31 PM ET
NORTHWEST AIRLINES CORP 10-K
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Contents
41
Section 1. Definitions. All terms defined in the Credit Agreement that are not otherwise defined herein shall have the meanings given them in the Credit Agreement.
Section 2. Amendments. The Credit Agreement is hereby amended as follows:
(a) Section 1.1 of the Credit Agreement is amended by adding or amending and restating, as applicable, the following definitions:
“Agency Agreement” means that certain Agency Agreement dated as of October 29, 2008, between U.S. Bank and JPMorgan Chase Bank, N.A., in each case in the capacity or capacities referred to therein, as the same may be amended, supplemented, restated or otherwise modified from time to time.
“Applicable 50% Reduction Threshold” means (i) during the period from and including December 10, 2008, through and including February 9, 2009, $2,500,000,000, and (ii) at any other time, $2,750,000,000.
“Cash Liquidity” means, at any time, the sum of (a) (I) unrestricted cash and cash equivalents of Holdings and its Subsidiaries at such time and (II) unrestricted short term investments of Holdings and its Subsidiaries at such time, excluding, however, in the case of both clause (I) and clause (II), (x) any such cash, cash equivalents or short term investments on deposit or held in any of the Pledged Dual-Control Accounts, Excluded Accounts and Escrow Accounts and (y) on and after April 30, 2009, any such cash, cash equivalents or short term investments on deposit or held in the Reserve Primary Fund Account and (b) the Undrawn Facility Amount at such time.
“Reserve Primary Fund Account” means Reserve Primary Fund account no. 82217773, as such account may be re-numbered or re-captioned from time to time, all sub-accounts of such account, and any duplicate, corollary or replacement account of such account.
(b) Section 1.1 of the Credit Agreement is further amended by amending and restating in its entirety clause (b) of the definition therein of “Current Appraised Value” to read as follows:
(c) Section 1.5 of the Credit Agreement is amended by adding the following at the end thereof:
(d) Section 2.9(a) of the Credit Agreement is amended and restated in its entirety to read as follows:
(e) Section 3.1(a)(ix) of the Credit Agreement is amended and restated in its entirety to read as follows:
(f) Section 5.2(h) of the Credit Agreement is amended and restated in its entirety to read as follows:
(g) Section 7.1(c) of the Credit Agreement is amended and restated in its entirety to read as follows:
(h) Exhibit D to the Credit Agreement is amended and restated in its entirety to read as set forth in Exhibit A to this Amendment.
(i) Schedule 1.1-C to the Credit Agreement is amended and restated in its entirety to read as set forth in Schedule A to this Amendment.
(j) Schedule 1.1-D to the Credit Agreement is amended and restated in its entirety to read as set forth in Schedule B to this Amendment.
(k) Schedule 1.1-E to the Credit Agreement is amended and restated in its entirety to read as set forth in Schedule C to this Amendment.
Section 3. Certain Consents and Waivers Relating to Accounts.
(a) The Borrower and the Guarantors each acknowledge that, as of the Effective Date, the Borrower owned account no. 2370770113039 at Smith Barney, a division of Citigroup Global Markets, Inc., notwithstanding the Borrower’s and each Guarantor’s representation and warranty under Section 4.17 of the Credit Agreement that each and every deposit account, sweep account linked thereto and other securities account owned or held by the Borrower or any of the Guarantors, except Escrow Accounts, Petty Cash Accounts, Payroll Accounts and accounts outside the United States, was listed on Schedule 1.1-B, Schedule 1.1-C, Schedule 1.1-D or Schedule 1.1-E to the Credit Agreement. Subject to the terms and conditions set forth herein, the Lenders hereby waive the breach described in the foregoing sentence and any Event of Default under Section 7.1(b) of the Credit Agreement on account of such breach.
(b) Subject to the terms and conditions set forth herein, the Lenders:
(i) consent to the closure, not later than the fifth Business Day after the date hereof, of each of the deposit or securities accounts listed on Schedule D hereto (the “Closed Accounts”), in each case by the Borrower or the Guarantor that owns such account, and to the closure by the Borrower of the Reserve Primary Fund Account as soon as the Borrower is able to do so; and
(ii) waive, in respect of each of the Closed Accounts and, solely until April 30, 2009, the Reserve Primary Fund Account, the requirement set forth in Section 4(j)(vii) of the Security Agreement, and the condition set forth in Section 3.1(a)(ix) of the Credit Agreement, as to the delivery of an Account Control Agreement in respect of such account.
(c) The waivers and consents set forth in this Section 3 each shall be effective only in this specific instance and for the specific purpose for which they are given, and none of such waivers and consents shall entitle the Borrower or any Guarantor to any other or further waiver or consent in any similar or other circumstances.
Section 4. Conditions Precedent to Effectiveness. This Amendment shall become effective when the Agent has received each of the following, each in form and substance reasonably acceptable to the Agent and each of the Lenders:
(a) this Amendment, duly executed by a duly authorized officer (or officers) of the Borrower, each of the Guarantors, the Agent and the Lenders;
(b) an amendment to the Agency Agreement, duly executed by a duly authorized officer (or officers) of each of the parties thereto;
(c) an Officer’s Certificate;
(d) a certificate of good standing for Holdings in the jurisdiction of its incorporation and a certificate of merger reflecting the Initial Delta Merger, certified by the appropriate governmental officials as of a date acceptable to the Agent; and
(e) payment of the fee referred to in Section 5 below for each Lender.
Section 5. Amendment Fee. On or prior to the date hereof, the Borrower shall pay to the Agent for the account of each Lender an amendment fee equal to 0.0625% of such Lender’s initial Commitment Amount. Such fee shall be deemed fully earned by each Lender when due.
Section 6. Representations and Warranties. The Borrower and each of the Guarantors hereby represent and warrant as follows:
(a) The Borrower and each of the Guarantors have the corporate power and authority, and the legal right, to make, deliver and perform this Amendment and the Credit Agreement as amended hereby. The Borrower and each of the Guarantors have taken all necessary corporate action to authorize the execution, delivery and performance of this Amendment and the Credit Agreement as amended hereby. No material consent or authorization of, filing with, notice to or other act by or in respect of, any Governmental Authority or any other Person is required in connection with the extensions of credit under the Credit Agreement as amended hereby or with the execution, delivery, performance, validity or enforceability of this Amendment or the Credit Agreement as amended hereby, except any such consent, authorization, filing, notice or other act required to be made or obtained after the Effective Date in the ordinary course of business. This Amendment has been duly executed and delivered on behalf of the Borrower and each Guarantor. This Amendment and the Credit Agreement as amended hereby each constitute a legal, valid and binding obligation of each of the Borrower and each Guarantor, enforceable against each such Person in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights
generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law).
(b) The execution and delivery of this Amendment and the performance of this Amendment and the Credit Agreement as amended hereby, and the other Loan Documents, the borrowings and other extensions of credit under the Credit Agreement as amended hereby and the use of the proceeds thereof will not violate in any material respect any material Requirement of Law or any material Contractual Obligation of Holdings or any of its Subsidiaries and will not result in, or require, the creation or imposition of any Lien on any of their respective properties or revenues pursuant to any such Requirement of Law or Contractual Obligation.
(c) Each of the representations and warranties set forth in the Credit Agreement as amended hereby and the other Loan Documents is true and correct in all material respects as of the date hereof, except to the extent that such representation and warranty relates to a specified date, in which case such representation or warranty was true and correct in all material respects as of such date.
(d) No event has occurred and is continuing that constitutes a Default or an Event of Default, except as specifically waived under Section 3. Without limiting the foregoing, each of the Collateralization Requirements is satisfied, and the Current Appraised Value of the Eligible Collateral (based on the Collateral Report delivered for the month ending October 31, 2008 with respect to Aircraft Fuel) is not less than the Collateral Coverage Threshold, in each case as of the date hereof.
Section 7. Release. The Borrower and each Guarantor hereby absolutely and unconditionally release and forever discharge the Agent and each of the Lenders, and any and all affiliates, insurers, successors and assigns thereof, together with all of the present and former directors, officers, agents, employees and attorneys-in-fact of any of the foregoing, from any and all claims, demands or causes of action of any kind, nature or description that the Borrower or any Guarantor has had, now has or has made claim to have against any such Person for or by reason of any act, omission, matter, cause or thing whatsoever arising on or before the date of this Amendment in any way relating to or arising out of the Loan Documents or any action taken or omitted under the Loan Documents, whether such claims, demands and causes of action are matured or unmatured or known or unknown.
Section 8. Costs and Expenses. Without limiting the generality of Section 10.2 of the Credit Agreement, the Borrower shall pay or reimburse the Agent and each Lender upon demand for all reasonable out-of-pocket expenses paid or incurred by the Agent or such Lender in connection with this Amendment and the Security Agreement Amendment.
Section 9. Consent to Security Agreement Amendment and Related Filings. Each of the Lenders hereby consents to the Security Agreement Amendment and to the filing of amendments to Financing Statements reflecting amendments effected thereby.
Section 10. Miscellaneous. Except as amended by this Amendment, all of the terms and conditions of the Credit Agreement shall remain in full force and effect. All references in the Credit
Agreement to “this Agreement” shall be deemed to refer to the Credit Agreement as amended hereby. This Amendment may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument, and any of the parties hereto may execute this Amendment by signing any such counterpart. The validity, construction and enforceability of this Amendment shall be governed by the internal laws of the State of Minnesota, without giving effect to conflict of laws principles thereof, but giving effect to federal laws of the United States applicable to national banks.