Clears Way For Final Vote On Reorg Plan
One small step for the judicial process... one giant leap for
Delta Air Lines. On Wednesday, US Bankruptcy Court Judge Adlai
Hardin approved the airline's disclosure statement that will be
sent to creditors, along with its plan to emerge from Chapter
The Associated Press reports the approval allows Delta to begin
actively soliciting votes in support of its plan to exit bankruptcy
in a matter of months.
"With this key ruling now in place, our airline is entering the
next phase as we prepare to emerge this spring as a strong,
competitive, stand-alone carrier," Delta CEO Gerald Grinstein wrote
in an e-mail to Delta employees.
On Tuesday, lawyers for Delta stated in court filings the
airline had resolved 11 objections to the statement, both "formal
and informal, filed or unfiled, represented or pro se."As Aero-News reported, those
objections came from such parties as the cities of Los Angeles, CA
and Denver, CO, as well as travel services provider
"The completely consensual nature of today's hearing is the
result of breathtakingly hard work by many, many people," said
Delta attorney Marshall Huebner.
Next up is a hearing, scheduled for April 25, to consider
approval of the reorganization plan. Creditors are expected to vote
on the plan until April 9. Approval of the reorg plan isn't a done
deal... but the plan has the backing of some key groups, including
the official unsecured creditor's committee, and committees
representing retired pilots and other airline retirees.
With this latest hurdle cleared, Delta is also turning its
attentions to who will replace Grinstein as CEO of the airline. The
74-year-old airline executive stated last year he plans to step
down after Delta emerges from Chapter 11, and a transition period
with his eventual successor.
Delta Chief Financial Officer Edward Bastian didn't offer any
details on the search to replace Grinstein.