Delta's creditors support independent plan
Say airline should emerge from bankruptcy as stand-alone company amid buyout offer from rival US Airways.
December 20 2006: 6:51 PM EST
NEW YORK (Reuters) -- Bankrupt Delta Air Lines Inc.'s official creditor committee said Wednesday it supported the carrier's decision to file a reorganization plan, but it would continue to consider potential alternatives.
Delta, which has been operating under Chapter 11 protection since September 2005, rejected a takeover offer from rival US Airways Group Inc. (Charts) Tuesday and filed a business plan that would see it exit bankruptcy as an independent carrier.
A number of issues, including those left open in the plan, will be the focus of continuing discussions between creditors and Delta over the coming weeks, the official committee of unsecured creditors said in a brief statement.
But the committee added that it would continue to look at alternatives at the same time to maximize recoveries for unsecured creditors.
The bid from US Air for Delta last month set off speculation that it could bring a round of mergers in the industry. Last week there were reports that United Airlines' parent UAL Corp. (Charts) was in preliminary talks with Continental Airlines (Charts) on a potential merger.
Say airline should emerge from bankruptcy as stand-alone company amid buyout offer from rival US Airways.
December 20 2006: 6:51 PM EST
NEW YORK (Reuters) -- Bankrupt Delta Air Lines Inc.'s official creditor committee said Wednesday it supported the carrier's decision to file a reorganization plan, but it would continue to consider potential alternatives.
Delta, which has been operating under Chapter 11 protection since September 2005, rejected a takeover offer from rival US Airways Group Inc. (Charts) Tuesday and filed a business plan that would see it exit bankruptcy as an independent carrier.
A number of issues, including those left open in the plan, will be the focus of continuing discussions between creditors and Delta over the coming weeks, the official committee of unsecured creditors said in a brief statement.
But the committee added that it would continue to look at alternatives at the same time to maximize recoveries for unsecured creditors.
The bid from US Air for Delta last month set off speculation that it could bring a round of mergers in the industry. Last week there were reports that United Airlines' parent UAL Corp. (Charts) was in preliminary talks with Continental Airlines (Charts) on a potential merger.
