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 11.

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 Travelocity.

"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.

FMI: www.delta.com