Delta creditors seeking data

ATLANTA — Some of Delta Air Lines Inc.'s creditors are insisting the struggling carrier provide more information on its turnaround plan before they will respond to the company's proposal for more flexibility in restructuring its debt.

A committee of 34 financial institutions holding roughly $1.3 billion of Delta debt said Tuesday that it wants substantial information on the company's business plan, financial condition and restructuring plan.

The committee said it believes other debt holders also will seek the information before responding to Delta's debt proposal.

Delta spokeswoman Peggy Estes said the airline had no comment on the developments.

Delta, which operates a hub at Salt Lake City International Airport, outlined a proposal last week that involves certain equity certificates issued by investor groups that lease aircraft to the airline to assist in financing jetliner costs. Delta is asking the holders of those certificates to remove any restrictions that would prevent the airline from buying or holding the securities.

One option Delta is considering is swapping some of its debt for equity in the company.

Delta's debt stands at more than $20 billion.

In addition to wanting to restructure its debt, the nation's third-largest airline is trying to get $1 billion in concessions from its pilots, change its fare structure and improve customer service as part of a broad turnaround plan.

The airline has warned of the possibility of bankruptcy without the pilot cuts.

The creditors' committee said it will not respond to Delta's consent solicitation before the company's Aug. 31 deadline. The creditors have asked Delta to extend the deadline, as well as provide the information they seek.

The committee consists of insurance companies, pension funds, bond funds and money managers. Its members have substantial interests in 169 of Delta's aircraft.

Michael Reilly, a lawyer representing the creditors, said in an interview that the creditors' request for information is "fairly customary." He said Delta could submit the information to creditors confidentially to make sure it's not released publicly.

Asked about the possibility of a bankruptcy filing at the airline, Reilly said, "I think only Delta can tell us that."