Delta Creditors do NOT support Delta's plan.....

[General Lee]

Reuters
Delta creditors group won't suport solicitations
Thursday August 26, 7:09 pm ET

LOS ANGELES, Aug 26 (Reuters) - A committee of creditors of Delta Air Lines Inc. (NYSEAL - News) said on Thursday it would not support consent solicitations sought by the company.
The Committee of Senior Secured Aircraft Creditors said it was "troubled" by Delta's responses to its requests for information.





Looks like Delta better come up with a better plan and share it with the people they owe money to. I bet they will have to come up with something fast.


Bye Bye--General Lee




Committee of Senior Secured Aircraft Creditors Will Not Support Delta's Request for Waivers on Debt Instruments
Thursday August 26, 7:03 pm ET Delta Refuses To Provide Senior Secured Creditor Group with Information

NEW YORK--(BUSINESS WIRE)--Aug. 26, 2004-- The Committee of Senior Secured Aircraft Creditors of Delta Air Lines, Inc. (DAL), whose holdings have increased to more than $1.4 billion of senior secured debt, learned from Delta today that the airline will not provide the Committee with requested due diligence information, or engage in any meaningful dialogue with the Committee, regarding Delta's restructuring efforts. Delta in August 18 consent solicitations sought waivers of contractual limits on Delta's ability to buy, hold or pledge debt instruments. In light of Delta's refusal to provide this information and due diligence regarding the restructuring, the Committee has advised Delta that it is unable to support the consent solicitations at this time. The solicitation period is scheduled to end on Tuesday, August 31.

The Committee is troubled by Delta's response to the Committee's requests for information and dialogue and finds it inconsistent with Delta's stated goal of seeking expedited solutions to its financial problems. The Committee also noted its disagreement with the Q&A statement Delta issued today that the failure to obtain the solicited consents would seriously limit Delta's ability to take future restructuring steps. As previously announced, the Committee believes that the consent solicitations are likely a first step in a possible debt restructuring, and that it would be imprudent, from its point of view, to respond without understanding Delta's restructuring plan. In the absence of that information, the Committee concluded that it had no choice but to withhold its support of the solicitations.

The Committee, comprised of insurance companies, pension funds, bond funds, and money managers, originally indicated on August 24 that its members could not responsibly respond to the solicitations until Delta had provided information that enabled them to evaluate the request.

The Committee anticipates that other Delta creditors that have been solicited for the public debt consent or for their private debt information also would refrain from responding, given Delta's refusal to provide any information. The Committee members have substantial interests in 169 of Delta's aircraft and are continuing to monitor Delta's financial condition and restructuring efforts. Members of the Committee hold public and private debt on aircraft in various senior lien financing facilities of Delta, including facilities known as Equipment Trust Certificates, Pass Through Certificates, Enhanced Equipment Trust Certificates, and various Private Placement Note issues.

 

[DL_Infidel]

"In light of Delta's refusal to provide this information and due diligence regarding the restructuring, the Committee has advised Delta that it is unable to support the consent solicitations at this time. The solicitation period is scheduled to end on Tuesday, August 31.

The Committee is troubled by Delta's response to the Committee's requests for information and dialogue and finds it inconsistent with Delta's stated goal of seeking expedited solutions to its financial problems."


Go figure. You mean they actually want detailed information on "the plan". The nerve of that Committee! Don't they know to just trust DL management? LOL!!


DL_Infidel
Wants to see a detailed plan as well before giving.

 

[General Lee]

I know the PLAN! It is to get major concessions, and then refurbish the interiors.

Bye Bye--General Lee

 

[MetroSheriff]

I know the PLAN! It is to get major concessions, and then refurbish the interiors.

Bye Bye--General Lee

Don't forget the new uniforms for the stews....

 

[MLBWINGBORN]

This is way way out there..

To think that ANY company managment would ask for such a request and NOT provide details to support such a request makes you wonder..

I wonder if they didnt mean for it to happen this way?

Or..Are they that arrogant to think that the credit industry will just beat a path to their door and give them what they want sight unseen?

If anybody hadnt noticed..Credit rates are at an all time low..Creditors will think long and hard before moving toward lower rates or forgiving debt in this market.

If this is the attitude the Deltas managment wants to present to both its creditors as well as its employees its going to be a very,very rough winter..

Mike

 

[FLB717]

I feel strongly that this is proof that DAL wants large cuts fromit's Pilot Union, only to use the Courts to leverage even greater cuts from DALPA, and delete many scope provisions and restructure.

 

[Heavy Set]

Go talk to the Harvard MBAs at McKinsey....

If they want a plan, the creditors should talk to McKinsey (Leo's management consulting firm). DAL has probably paid them $millions to come up with a super-innovative plan. OR they could just ask Dave Siegel of USAirways fame - just cut everyone's wages to the bone...

Now do you see why the DAL pilots have been RELUCTANT to accept any major wage cut proposals? There has been no plan to review... How much is DAL's management earning in huge salaries and retention bonuses? And they can't formulate a plan in time (how long has it been - 6-9 months)? Ridiculous!

 

[jetblue320]

If they want a plan, the creditors should talk to McKinsey (Leo's management consulting firm). DAL has probably paid them $millions to come up with a super-innovative plan. OR they could just ask Dave Siegel of USAirways fame - just cut everyone's wages to the bone...

Now do you see why the DAL pilots have been RELUCTANT to accept any major wage cut proposals? There has been no plan to review... How much is DAL's management earning in huge salaries and retention bonuses? And they can't formulate a plan in time (how long has it been - 6-9 months)? Ridiculous!

Or......you could just get help from that V70T5 guy right here on Flightinfo.com!!

He has an an MBA in Finances (just ask him) AND he seems to have all of the answers!!!

 

[MLBWINGBORN]

Ouch..

Thats going to leave a mark..


Mike

 

[JB Bus Drvr]

Let me get this straight. DL mgmt wants to take an arm and leg from the pilots but spend a lot of money on aircraft interiors with a VP? in charge of interiors. Common sense (not a usual trait by a lot of mgmt types) would dictate to hold up on spending until costs come under control and to get rid of these high priced mgmt types who costs the company money and leave the people who make the money for the company alone.

 

[sleepy]

Hey General,

I was just driving down Howell Mill Rd. this morning and passed a Mini Cooper car painted like a DAL jet. It even had little wings and jet engines stuck on the sides. Was that you driving it? I waved to you.

Really now. I can't believe that a company that is asking for concessions from employees and vendors is spending the shareholders money on crap like this. It makes me want to fly Airtran from now on (that and Airtran has Business Class seats for DAL coach prices).

 

[AA717driver]

Let me get this straight. DL mgmt wants to take an arm and leg from the pilots but spend a lot of money on aircraft interiors with a VP? in charge of interiors. Common sense (not a usual trait by a lot of mgmt types) would dictate to hold up on spending until costs come under control and to get rid of these high priced mgmt types who costs the company money and leave the people who make the money for the company alone.

This epitomizes the problem with the legacies. They have no concept of how to save money. They cut a bit in one area while the floodgates are opened by someone else.

I say it's time they get another new paint scheme. TC

 

[~~~^~~~]

I was just driving down Howell Mill Rd. this morning and passed a Mini Cooper car painted like a DAL jet. It even had little wings and jet engines stuck on the sides. I can't believe that a company that is asking for concessions from employees and vendors is spending the shareholders money on crap like this.

I thought the Mini was one of the best ideas to come out Delta's marketing department in a while. It is cool ( this from a person who has not used the word "cool" in a long time) Delta could use a little "cool" right now. Ususally the Mini is driven by volunteer employees that offer to do Company marketing for free at various functions. The cost is Mini-mal.

ALPA should hold a bake sale for Delta - that would get the press going.

 

[sleepy]

I thought the Mini was one of the best ideas to come out Delta's marketing department in a while. It is cool ( this from a person who has not used the word "cool" in a long time) Delta could use a little "cool" right now. Ususally the Mini is driven by volunteer employees that offer to do Company marketing for free at various functions. The cost is Mini-mal.

ALPA should hold a bake sale for Delta - that would get the press going.

Then maybe that was The General driving it. All it needs is a Rebel Flag license plate. I still think it looked stupid.

 

[General Lee]

Yes, that was me in the mini-cooper. I was also wearing a Delta Speedo Banana Hammack (Or a Song Thong) and a "I Love Leo Mullin" Bandana on my head!


Bye Bye--General Lee

 

[SKLJ]

Another source article. Delta Management needs to come clean

Creditors Won't Restructure Delta Debt
ATLANTA (AP) - A group of Delta Air Lines Inc. creditors said Thursday it won't agree to a plan to restructure the airline's debt because the company has refused to provide information it has requested.

The Committee of Senior Secured Aircraft Creditors said Delta had not presented data it needs on the airline's business plan, financial condition and restructuring plan.

The group of 34 financial institutions, which said its holdings had increased to more than $1.4 billion of Delta debt, requested the additional information on Tuesday. At the same time, the committee said it would be unable to meet a Delta deadline of Aug. 31 to agree to the debt restructuring plan.

In a news release, Delta said it was providing additional information, in the form of a Q&A, to help holders of debt securities to better understand its efforts. Delta spokeswoman Patti Futrell said the airline would have no comment beyond that news release and another it issued last week announcing the debt proposal.

Michael J. Reilly, a lawyer representing the creditors committee, said the Q&A was "totally inadequate to address Delta's restructuring plan."

The proposal Delta outlined Aug. 18 involves equity certificates issued by investor groups that lease aircraft to the airline to assist in financing the planes' cost. Delta wanted the holders of those certificates to remove restrictions that prevent the airline from buying or holding the securities.

Delta is considering swapping some of its more than $20 billion debt for equity in the company as part of a broad turnaround plan that also includes $1 billion in concessions from its pilots, changes to its fare system and improved customer service.

The nation's third-largest airline, Atlanta-based Delta has warned of the possibility of bankruptcy if it doesn't get the pilot cuts. The debt restructuring is another avenue in Delta's effort to avoid a Chapter 11 filing.

The creditors' committee asked Delta to extend the Aug. 31 deadline, as well as provide more information about the restructuring plan.

"The committee is troubled by Delta's response to the committee's requests for information and dialogue and finds it inconsistent with Delta's stated goal of seeking expedited solutions to its financial problems," Reilly said in a statement.

In a telephone interview, Reilly told The Associated Press that the Q&A Delta referred to "just talks about technical items" but leaves unanswered questions about other portions of the restructuring plan, such as pilot union concessions and agreements with private bond holders.

The committee Reilly represents consists of insurance companies, pension funds, bond funds and money managers. Its members have interests in 169 of Delta's aircraft, but there are also substantial holdings by the nonpublic sector.

Delta shares fell by 1 cent to close at $4.19 Thursday on the New York Stock Exchange.

 

[jetblue320]

Or......you could just get help from that V70T5 guy right here on Flightinfo.com!!

He has an an MBA in Finances (just ask him) AND he seems to have all of the answers!!!

Well, I knew he wouldn't reply to this. He has too much dignity, right? What a blowhard......

Too busy I guess....well, he wasn't too busy to bash the heck outta JB. But now that his beloved DL needs him (and his MBA) he's no where to be found. Must be working a double at WalMart.

Loser.....

See ya at Home Depot on my next trip for a plumbing fixture. Meanwhile, I'll be busy lowering the industry standard and ruining it for everyone.

 

[SWA/FO]

I thought JB guys were all about spreding cheer and goodwill in the name of aviation, low fares and blue chips?

 

[jetblue320]

I thought JB guys were all about spreding cheer and goodwill in the name of aviation, low fares and blue chips?

In most cases, you are correct. But this guy has pushed me to my limit and I plan on having some fun barbing him every chance I can. Ok, flame mode off.....

Gotta run for now and answer some posts from guys wanting help about getting on at JB. I thought that was what this board was for anyway?

 

[IB6 UB9]

"Gotta run for now and answer some posts from guys wanting help about getting on at JB. I thought that was what this board was for anyway?"

That's what I thought too, but you are starting to lead me to think otherwise. Maybe it's time to lighten up a little Batsy, remember...you're the one in a pretty good position.