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Delta Bankruptcy Here it Comes

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701EV

Well-known member
Joined
Oct 10, 2002
Posts
760
NEW YORK (Reuters) - Delta Air Lines (NYSE:DAL - News) has begun arranging the financing it would need should it seek bankruptcy protection, The New York Times reported on Saturday.


Citing "people with direct knowledge of Delta's actions," the Times reported that Wall Street analysts, industry executives and finance experts said the troubled airline could seek the protection within weeks.

The Atlanta-based airline is holding the discussions with lenders including GE Commercial Finance, which provided restructuring money in 2004, the Times said, citing both airline employees and members of the financial community. It said GE Commercial declined to comment.

The No. 3 domestic airline is also exploring selling or refinancing its commuter lines, Comair and Atlantic Southeast Airlines, and is seeking more savings from employees, according to the report.

The Times also said that Delta officials had acknowledged that it needed to be financially prepared for a filing, which legal experts expected would occur in New York, although a final decision was not imminent.

Delta, like the rest of the industry, has been battered by skyrocketing oil prices.

On Aug. 29 the airline's credit card processing agreement, which covers critical MasterCard and Visa transactions, will expire. Delta said on Tuesday it was trying to lower the amount of money it needs to pay up front to secure a new credit card processor. People close to the talks say Delta is being asked to set aside $300 million to $800 million, but the airline did not comment on the figures, the Times said.


Get ready here it comes!

701EV
 
Yup, it probably is needed. It won't be fun at all. Nope. But, things that have needed to be done a while ago will be done. Getting rid of some debt, selling non essential assets, and getting reasonable lease rates (heck, United got most of theirs) will help. Sure, there will be some pay cuts also, but it will be across the board (except for management of course). (and we only have one union---all the rest will take it without a fight) Labor has given over $2 billion in pay cuts as concessions, and so far the creditors have given $100 million. They will now have to share in more of the pain. Also, we actually have a plan to transform, but we were late implementing it. Overall, it may need to happen.


Bye Bye--General Lee
 
General Lee said:
Yup, it probably is needed. It won't be fun at all. Nope. But, things that have needed to be done a while ago will be done. Getting rid of some debt, selling non essential assets, and getting reasonable lease rates (heck, United got most of theirs) will help. Sure, there will be some pay cuts also, but it will be across the board (except for management of course). (and we only have one union---all the rest will take it without a fight) Labor has given over $2 billion in pay cuts as concessions, and so far the creditors have given $100 million. They will now have to share in more of the pain. Also, we actually have a plan to transform, but we were late implementing it. Overall, it may need to happen.


Bye Bye--General Lee

Don't forget the garage sale with ASA and Comair up for grabs. Probably cheap too.
 
...I wouldn't wish this on anyone. I remember hearing about how Delta used to pay cash for its aircraft. Hang tough guys...hope things turn around soon.
 
VABB said:
Don't forget the garage sale with ASA and Comair up for grabs. Probably cheap too.

Ooooh...I don't want the whole airline...but if I could get a sweet deal on just one CRJ :D .....
 
AlbieF15 said:
...I wouldn't wish this on anyone. I remember hearing about how Delta used to pay cash for its aircraft. Hang tough guys...hope things turn around soon.


You must of meant UPS, the DO pay for CASH for EVERYTHING! Oh, the do lease some aircraft, but they OWN the leasing company!
 
"all the rest will take it without a fight"

Yes, they certainly will not be upset at all:)
 
Who knows, perhaps this week will bring news of an equity player and a life boat to maintain the Delta network until the low cost carriers lose their fuel hedges.
 
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