Northwest Airlinessaid holders of its current shares will not receive any payments under the carrier's plan to exit bankruptcy in the second quarter.
The company said under the plan it will cancel its common and preferred stock, when it emerges from bankruptcy.
Northwest said it may raise exit financing via an equity rights offering. The No. 5 U.S. carrier may also raise equity capital from one or more private equity investors.
Northwest filed its plan of reorganization with the U.S. bankruptcy court on Friday.
The carrier, which has been in Chapter 11 since September 2005, had until Jan. 16 to file a plan without interference from outside parties.
The airline also asked the court, with the consent of its creditor committee, for an extension until Feb. 15 to file a disclosure statement with the court.