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Delta hopes to quit bankruptcy in late April
POSTED: 2:41 p.m. EDT, February 9,2007

US carrier Delta Air Lines plans to exit bankruptcy as soon as late April after winning court backing for its latest plans to go it alone as an independent company.

Delta said late Wednesday that the US Bankruptcy Court for the southern district of New York had approved a so-called disclosure statement filed in connection with its proposed reorganization plan.

Edward Bastian, Delta's chief financial officer and head of its restructuring efforts, said the court decision was "another crucial and tremendous vote of confidence in our plan and our people."

The court has scheduled a hearing to consider approval of the plan on April 25.

As a result, he said, "we remain on course to exit bankruptcy this spring, possibly as soon as late April, as a strong, fiercely competitive airline."

Atlanta, Georgia-based Delta, and the airline's creditors, had rebuffed a 10-billion-dollar takeover offer from US Airways, prompting the low-cost carrier to abandon its bid in late January.

Delta chief executive officer Gerald Grinstein said: "The court's approval to proceed validates and recognizes the remarkable progress Delta people have made together to transform this great airline."

The third-biggest US carrier filed its reorganization plan with the US Bankruptcy Court overseeing its finances in December, and stressed its interests were better served by remaining independent.

Delta filed for protection under Chapter 11 of the US bankruptcy code in September 2005, the same day as Northwest Airlines. Both carriers had been suffering from the slump in aviation since the 2001 terror attacks, an industry crisis worsened by a spike in fuel costs.

From:AFP
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