CHICAGO -- Northwest Airlines executives on Monday broke off their negotiations with Minnesota officials for a possible $740 million bond-financed loan to finance the airline's expansion of operations in the state.

The state and the Metropolitan Airports Commission had been considering jointly financing the loan to Northwest. Under legislation approved in May by the Minnesota General Assembly, the state could have issued up to $350 million of general obligation and revenue bonds to finance two new airline maintenance facilities in the state, while the airports commission -- owner and operator of Minneapolis/St. Paul International Airport -- could have issued up to $390 million of GO and revenue bonds for a direct loan to Northwest.

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