Delta Says Creditors Vote Overwhelmingly For Reorganization Plan
Monday, April 16th 2007, 12:51 pm
By: News On 6
ATLANTA (AP) _ Delta Air Lines Inc. said Monday unofficial voting results show its reorganization plan has received enough creditor support to be approved, paving the way for it to emerge from bankruptcy protection on April 30.
The Atlanta-based airline said in a statement that the results show that more than 95 percent of ballots cast were in favor of the plan.
Creditors also voted in favor of a reorganization plan for Delta's wholly owned regional airline subsidiary Comair, Delta said.
The final voting results for both plans will be filed later this week with the U.S. Bankruptcy Court in New York.
A confirmation hearing is scheduled for April 25, and Delta has said it expected to emerge from Chapter 11 on April 30.
Typically, in each class of creditors, Delta's plan would have to be approved by holders of two-thirds of the claims and a majority of the number of individual creditors for it to pass.
``We appreciate our creditors' strong vote of confidence in our plan, which we believe both maximizes their recovery and builds a foundation for Delta's long-term success,'' said Ed Bastian, Delta's chief financial officer.
Delta's reorganization plan calls for unsecured creditors to get between 62 percent and 78 percent of the amount of their allowed claims. The recoveries will be paid in the form of shares of new Delta stock. Delta's existing stock will be canceled when it emerges from bankruptcy.
Delta has estimated it will be worth $9.4 billion to $12 billion when it emerges from Chapter 11.
Delta, the nation's third-largest carrier, filed for bankruptcy protection in September 2005.