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Wiskey Driver

Return of the Hub Raider
Joined
Aug 31, 2002
Posts
1,308
Delta Panel May Ask US Airways to Extend Deadline (Update5)

By Mary Schlangenstein and Jeff St.Onge
Jan. 26 (Bloomberg) -- Delta Air Lines Inc.'s creditors may ask US Airways Group Inc. to extend the Feb. 1 deadline on its hostile takeover bid as they study competing plans for the bankrupt carrier's future, people familiar with the matter said.
The nine-member committee of unsecured creditors is split between those favoring a quicker payback of their claims through a US Airways merger and those who would benefit under a Delta plan to emerge from court protection as an independent company, said the people, who didn't want to be identified because the discussions are private.
US Airways wants the panel to urge Atlanta-based Delta to open its financial records and trigger a U.S. antitrust review. If the committee doesn't act by Feb. 1, the $9.67 billion offer expires, Chief Executive Officer Doug Parker has said.
US Airways probably would extend its deadline if the creditors ``said one single positive thing about the deal,'' said Jim Corridore, a New York-based analyst for Standard & Poor's. ``All they need to do is allow the process to continue. This is not a selection of one plan over the other.''
An extension would give the creditors' panel more time to debate US Airways' merger plan and Delta's bid to leave bankruptcy as a stand-alone airline by mid-2007, the people said.
The committee has ``not asked us for an extension of the deadline,'' said Kelly Sullivan, a spokeswoman for Tempe, Arizona-based US Airways.
``We continue to work constructively and collaboratively with the creditors committee and others involved in our Chapter 11 proceedings,'' said Betsy Talton, a Delta spokeswoman. She declined to comment on the possible extension request.
Parker's Plan
Parker has offered $5 billion in cash and 89.5 million US Airways shares for Delta, whose creditors would own 49 percent of what would become the world's largest airline. Delta's plan to remain independent values the airline at as much as $12 billion. Delta is the third-biggest U.S. carrier by traffic; US Airways is seventh.
US Airways and Atlanta-based Delta are both courting the creditors committee, which will help set terms for any bankruptcy exit. The panel is led by Boeing Co. and includes Coca-Cola Co.; United Technologies Corp.'s Pratt & Whitney, which makes aircraft engines; and Delta's pilots union.
The committee and its members face a Jan. 31 deadline to file objections to Delta's disclosure statement, which explains the airline's reorganization plan. A hearing on the document is set for Feb. 7.
Creditors
``There are several large creditors that have conflicts of interest in terms of their willingness or desire to work with Delta in the future,'' S&P's Corridore said in an interview. ``Their best interests may not line up with the best interests of the creditors not on the committee.''
A reorganization plan generally doesn't go to all of the airline's creditors for approval until it has the backing of the creditors committee. A judge can confirm a plan over creditor objections as long as it is fair and reasonable.
A separate committee representing 20 institutions that own $2.25 billion of Delta's debt urged the panel on Jan. 24 to begin talks with US Airways.
The bondholders ``are interested in maximizing the immediate return on their investment,'' said Eric Schaffer, a Pittsburgh-based bankruptcy attorney with Reed Smith LLP. Members of the creditors panel ``are looking at it from what is arguably a longer-term perspective.''
Delta estimates that unsecured claims against it would total $14.2 billion. The airline's September 2005 bankruptcy filing listed debt of $28.3 billion and assets of $21.8 billion.
Delta's 8.3 percent note due in 2029 fell 0.563 cent to 61.938 cents on the dollar today, according to Trace, the bond- price reporting service of NASD.
Shares of Delta rose 1 cent to $1.16 in over-the-counter trading. US Airways declined $1.73, or 3.2 percent, to $52.13 at 4:03 p.m. in New York Stock Exchange composite trading.
The case is In re Delta Air Lines Inc., 05-17923, U.S. Bankruptcy Court, Southern District of New York (White Plains).
To contact the reporters on this story: Mary Schlangenstein in Dallas at [email protected] ; Jeff St.Onge in Washington at [email protected] .
Last Updated: January 26, 2007 16:14 EST
 
WD:
This so called panel that you mention makes up less of a claim then the union does.....But of course you're posting this because of....:smash:


737
 
WD:
This so called panel that you mention makes up less of a claim then the union does.....But of course you're posting this because of....:smash:

73 Pylt,

Why is it you NEVER complain about the articles that Gen Lee posts????????? It's just a news article and nothing more. Gen posts articles and it's ok by you but someone post a different view then yours and the attacks begin, can't wait for the rest of your comrads to jump in:rolleyes:


737
.....
WD.
 
.....
WD.

Relax francis.....I guess you missed the post where I told GL to step away from his computer or he was going to give himself an aneurysm, and was pounced on by one of your stellar aviators about my spelling....
Its just fun, remember!:rolleyes:
 
Relax francis.....I guess you missed the post where I told GL to step away from his computer or he was going to give himself an aneurysm, and was pounced on by one of your stellar aviators about my spelling....
Its just fun, remember!:rolleyes:

You know what, I did see that and forgot all about it. I guess I was getting ready for defense mode:p .

"Lighten up francis" quote, one of my favorite movies stripes.

WD.
 
The committee has ``not asked us for an extension of the deadline,'' said Kelly Sullivan, a spokeswoman for Tempe, Arizona-based US Airways.



This is a rumor so far. The title said the committee MAY ask for an extension. But, they may look into it for sure, and then on Feb 15th Parker and Grinstein have to go back to the Hill and talk to Oberstar and his Transportation committee, if it gets that far. But, I would expect Parker to try to give it one more try, possibly by bringing in a larger offer. He is desperate.



And earlier I posted an article that stated two Senators (one from Utah which is a DL base) want to make sure that IF this does happen, the DOJ will do a long and thorough review, which would delay payouts to any creditor. The US/UA review took 14 months, with far less overlap that our combined takeover would produce. That was a signal to the creditors that they would NOT be getting their money so fast from Parker...


WASHINGTON (Dow Jones)--Two U.S. senators urged Attorney
General Alberto Gonzales on Thursday to ensure that the
Justice Department will conduct a thorough investigation
before any potential consolidation in the airline industry
is granted approval.

Writing in a letter to the Attorney General expressing their
concern, Sens. Herb Kohl, D-Wis., and Orrin Hatch, R-Utah,
told Gonzales of their "firm expectation" that Justice's
antitrust unit would investigate a proposed merger in the
sector "with all due care and vigor."

The two said they are concerned about the effects of a
possible merger between US Airways Group Inc. (LCC) and
Delta Air Lines Inc. (DALRQ) on competition in the industry
.

US Airways is engaged in a hostile takeover battle to
acquire Delta, which is in bankruptcy protection. US
Airways' first bid was rejected out of hand last year, while
a second - worth around $10 billion - has not yet received
any response from Delta's creditors, who must sign off on
the deal.




And 737 pylt, I don't need your help. I ENJOY this board, and I will continue posting.


Bye Bye--General Lee
 
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The committee has ``not asked us for an extension of the deadline.

Because you're not that important:) !!!



And 737 pylt, I don't need your help. I ENJOY this board, and I will continue posting.

Wow!! No love between brothers huh General??


Bye Bye--General Lee

I guess that's no real suprise.

WD.
 
I ENJOY this board, and I will continue posting.

I don't think any of us would have come to that conclusion on our own.:)

Keep up the good work General. On a forum that is so full of skepticism and negativity, your optimism and well thought out and researched posts are, imo, a welcomed addition to FI.
 
I guess that's no real suprise.

WD.


We're not that important???? Ummm, okay. That was USAir responding to whether they were asked for an extension from the committee. They were not that important? What? And, I think 737pylt is a great guy, but I enjoy this board and don't need anyone else's advice. It is a labor of love....but thanks for your concern!

Bye Bye--General Lee
 
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I don't think any of us would have come to that conclusion on our own.:)

Keep up the good work General. On a forum that is so full of skepticism and negativity, your optimism and well thought out and researched posts are, imo, a welcomed addition to FI.

Well thanks. I think your technical knowledge of the law and our contract show you are no pushover. Your well timed responses are welcomed always.

Bye Bye--General Lee
 

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