Wed, Mar 07, 2007
Airlines Solicit Court For Extensions
In a possible setback for its goal to emerge from Chapter 11
bankruptcy by the end of summer, Delta Air Lines asked the US
Bankruptcy Court on Monday for more time to solicit acceptance for
its reorganization plan.
The Associated Press reports it is the fourth time Delta has
asked for such an extension, and the first since Delta revealed its reorg plan in
December. The current plan gives Delta until April 16
to garner approval; after that, other entities -- including Delta's
creditors -- may file their own proposals to return Delta to
profitability.
The Atlanta-based carrier is asking for that deadline to be
moved to June 1. Delta argued the extension is warranted, as a
confirmation hearing on the plan is scheduled for April 25, nine
days past the current deadline.
"The enormous size and vast complexity of these Chapter 11 cases
mean that voting on and seeking conformation of the plan of
reorganization will take time," Delta stated in its court motion,
which is now being reviewed.
The carrier denied the
extension request is a negotiating tactic, adding the request has
the support of the official committee of the airline's unsecured
creditors.
For the moment, there is no indication any other entities plan
to file competing reorganization plans.
Delta isn't the only carrier asking for more time to sway its
creditors to see its side of things. Similarly troubled Northwest
Airlines -- which filed for Chapter 11 the same day as Delta --
also asked for an extension Monday to the period during which it
may exclusively propose a reorganization plan. Northwest will need
an answer soon... as its deadline is due to expire March 16.
Northwest is asking for that date to be extended to June 29...
one day before the end of the second fiscal quarter. Northwest has
stated it intends to exit bankruptcy in the second quarter.
That's gonna be close...
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