Delta says creditors OK reorganization

April 16, 2007 at 5:39 PM
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ATLANTA, April 16 (UPI) -- Delta Air Lines Inc. said Monday creditors overwhelmingly approved its reorganization plan, positioning the No. 3 U.S. carrier to emerge from bankruptcy.

The Atlanta airline said unofficial results showed more than 95 percent of ballots cast favored the plan.

Creditors also voted in similar numbers in favor of the reorganization plan for Delta's wholly owned regional subsidiary Comair Inc., Delta said.

The final voting results for both plans will be filed with the U.S. Bankruptcy Court in New York this week, Delta said.

The court will be asked to confirm Delta's reorganization plan April 25. Its approval would let Delta exit Chapter 11 bankruptcy protection.

Delta said March 27 it hoped to emerge April 30.

Delta's plan calls for unsecured creditors to get 62 cents to 78 cents for each dollar of their allowed claims. Claims will be paid in new Delta stock. Delta's existing stock will be canceled.

Delta has said it would be worth $9.4 billion to $12 billion when it exits Chapter 11. It applied March 28 to be listed on the New York Stock Exchange under its original ticker symbol, DAL.

The carrier filed for bankruptcy protection in Sept. 22, 2005.

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