Case | HBS Case Collection | July 1996 (Revised January 1997)

Northwest Airlines: Brush with Bankruptcy (A)--November 1992

by Leonard A. Schlesinger and Davis Dyer


Deals with Northwest's financial crisis between the fall of 1992 and the following spring. Northwest's leaders face the problem of how to meet an impending $600 million payment on the 1989 LBO loan when the airline had run out of cash. Concludes by outlining options for Northwest to avert disaster, and it includes a brief background note on financial restructuring.

Keywords: Air Transportation; Restructuring; Leveraged Buyouts; Crisis Management; Insolvency and Bankruptcy; Financial Strategy; Financial Crisis; Air Transportation Industry; United States;


Schlesinger, Leonard A., and Davis Dyer. "Northwest Airlines: Brush with Bankruptcy (A)--November 1992." Harvard Business School Case 897-030, July 1996. (Revised January 1997.)