Reuters: Delta 'shopping around' for bankruptcy lawyers
Delta Air Lines Inc., which only days ago reported a $1 billion loss for the second consecutive year, may be looking to hire bankruptcy lawyers, Reuters reported citing unnamed sources.
More major U.S. airlines, including the world's largest, American Airlines, have hired bankruptcy lawyers in the face of an unprecedented downturn as war with Iraq looms, sources familiar with the matter told Reuters.
UAL Corp., parent of United Airlines, and US Airways Group Inc. filed for bankruptcy last year. American, a unit of Dallas-based AMR Corp., has retained lawyers Marcia Goldstein and Martin Bienenstock at its long-time legal adviser Weil Gotshal & Manges, sources said. Also said to have hired bankruptcy attorneys for various purposes were Continental Airlines and America West Holdings Corp.
A source familiar with the matter said Atlanta-based Delta (NYSE: DAL) and Northwest Airlines Corp. were "shopping around."
The sources said the hiring of various firms does not necessarily mean that the airlines are preparing imminent bankruptcy filings. But it signals they are keeping options open as billions of dollars in industry losses continue since the Sept. 11, 2001 attacks threw the industry into an unprecedented financial crisis.
Delta Air Lines Inc., which only days ago reported a $1 billion loss for the second consecutive year, may be looking to hire bankruptcy lawyers, Reuters reported citing unnamed sources.
More major U.S. airlines, including the world's largest, American Airlines, have hired bankruptcy lawyers in the face of an unprecedented downturn as war with Iraq looms, sources familiar with the matter told Reuters.
UAL Corp., parent of United Airlines, and US Airways Group Inc. filed for bankruptcy last year. American, a unit of Dallas-based AMR Corp., has retained lawyers Marcia Goldstein and Martin Bienenstock at its long-time legal adviser Weil Gotshal & Manges, sources said. Also said to have hired bankruptcy attorneys for various purposes were Continental Airlines and America West Holdings Corp.
A source familiar with the matter said Atlanta-based Delta (NYSE: DAL) and Northwest Airlines Corp. were "shopping around."
The sources said the hiring of various firms does not necessarily mean that the airlines are preparing imminent bankruptcy filings. But it signals they are keeping options open as billions of dollars in industry losses continue since the Sept. 11, 2001 attacks threw the industry into an unprecedented financial crisis.
