Delta recovery plan rejects US Airways bid

Dec. 19, 2006 at 8:28 AM
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ATLANTA, Dec. 19 (UPI) -- Delta Air Lines filed a Chapter 11 reorganization plan Tuesday urging creditors to let the company work out of bankruptcy on its own.

The plan assured creditors of getting more of their money and sooner if Delta remains independent and a US Airways takeover bid is rejected.

It places a Delta value of between $9.4 billion and $12 billion, more than the recent $8.4 billion buyout offer from US Airways, The Atlanta Journal-Constitution said.

Estimating creditors would recover 63 to 80 percent of their bankruptcy claims under the Delta plan, the airline predicted an operating profit margin of 8 to 10 percent in the next four years.

US Airways offered Delta's creditors $4 billion in cash and 78.5 million US Airways shares with a current market value of about $4.4 billion.

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