December 28, 2006
Delta Air Lines set a February 7 hearing to begin seeking approval from creditors to exit bankruptcy as a stand-alone carrier, according to a court document.
Delta, which earlier this month rejected an USD$8.3 billion takeover bid from rival US Airways and presented its stand-alone plan, intends to hold a hearing to approve its disclosure statement, which details its restructuring plan.
Atlanta-based Delta has said it would be worth more as an independent carrier than the cash-and-stock offer from US Airways. But the airline needs its creditors to vote in favor of the plan to be successful.
The hearing on the disclosure statement generally provides a forum for creditors to raise objections and gives an indication of the type of resistance the plan may face.
If the disclosure statement is approved, the company could solicit votes from creditors that held claims as of February 1.
The voting process typically takes four to eight weeks, with results of the voting possible by April, Delta spokesman Michael Freitag said.
(Reuters)