Delta creditors committee balks at airline's consent solicitation
Dateline: Monday August 30, 2004
The Committee of Senior Secured Aircraft Creditors of Delta Air Lines said last week that in light of the carrier's refusal to provide the committee with requested due diligence information or engage in meaningful dialogue regarding Delta's restructuring efforts, it is unable to support the company's efforts that could lead to a restructuring of its debt and leasing obligations.
"The committee is troubled by Delta's response to the committee's request for information and dialogue and finds it inconsistent with Delta's stated goal of seeking expedited solutions to its financial problems," the committee said in a statement.
In addition, the committee said it believes 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." Delta last week began soliciting consents from holders of certain equipment trust and pass-through certificates to remove any contractual restrictions on the airline's ability to purchase or hold those securities in an effort to provide the company with "greater flexibility to effect a successful out-of-court restructuring."--LF
Dateline: Monday August 30, 2004
The Committee of Senior Secured Aircraft Creditors of Delta Air Lines said last week that in light of the carrier's refusal to provide the committee with requested due diligence information or engage in meaningful dialogue regarding Delta's restructuring efforts, it is unable to support the company's efforts that could lead to a restructuring of its debt and leasing obligations.
"The committee is troubled by Delta's response to the committee's request for information and dialogue and finds it inconsistent with Delta's stated goal of seeking expedited solutions to its financial problems," the committee said in a statement.
In addition, the committee said it believes 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." Delta last week began soliciting consents from holders of certain equipment trust and pass-through certificates to remove any contractual restrictions on the airline's ability to purchase or hold those securities in an effort to provide the company with "greater flexibility to effect a successful out-of-court restructuring."--LF
