Delta creditors committee supports Delta's standalone plan; US Airways withdraws bid

ATLANTA (AP) _ Delta's official creditors committee threw its support behind the bankrupt airline's standalone reorganization plan on Wednesday, a decision that prompted US Airways to drop its

Wednesday, January 31st 2007, 11:26 am

By: News On 6

ATLANTA (AP) _ Delta's official creditors committee threw its support behind the bankrupt airline's standalone reorganization plan on Wednesday, a decision that prompted US Airways to drop its hostile $9.8 billion bid to buy Delta.

Delta Air Lines Inc.'s committee said in a statement it reached its decision after a lengthy review of both Delta's proposal and US Airways Group Inc.'s proposal.

The creditors committee is a key player in Delta's Chapter 11 case. US Airways had asked for support from the committee, and set a deadline of Thursday.

Delta has said it projects it will be worth $9.4 billion to $12 billion when it emerges from bankruptcy by the middle of this year. Its management had said repeatedly it wanted to remain on its own and not combine with US Airways.

The official creditors committee said in its statement that it ``has determined that it will support the standalone plan of reorganization as finally agreed upon between Delta and the Creditors Committee that will be filed later this week.''

``The Creditors Committee reached this determination after engaging in extensive discussions with representatives of Delta and US Airways over the last two months and upon consideration of the advice of the Creditors Committees legal, financial and industry advisors,'' the statement said.

The statement added, ``In reaching this decision, the Creditors Committee considered a variety of factors, including, but not limited to, valuation of, the timing and the risks associated with, and the likelihood of a successful consummation of the US Airways proposal and the plan.''

The committee said it will work with Delta to confirm Delta's plan.