From Deseret News archives:
Creditors paid heed to regulatory risks
But in defeating the hostile bid Wednesday, the regulatory angle may have been Delta Air Lines Inc.'s most successful drumbeat.
A key group of Delta's creditors said in endorsing Delta's stand-alone plan Wednesday that it considered, among other things, the risks associated with and the likelihood of a successful consummation of US Airways' proposal.
Analysts had said regulatory concerns over US Airways' proposal might be a bigger issue than the $9.8 billion US Airways was offering for Delta. Delta had said the US Airways proposal would cause a significant delay in Delta's emergence from Chapter 11 because of how regulators would view the overlapping routes of the two carriers. US Airways had argued regulatory issues would not cause a delay.
But in the end, US Airways Group Inc. dropped its hostile bid after Delta's official committee of unsecured creditors said the carrier would be better off emerging from Chapter 11 on its own.
With the dual decisions, Atlanta-based Delta cleared a big hurdle in its effort to exit bankruptcy by the middle of this year as a stand-alone company.
A Feb. 7 hearing in bankruptcy court in New York is scheduled to discuss the disclosure statement. If the statement related to Delta's operations is approved, Delta could begin soliciting votes for approval of its reorganization plan. Delta hopes to hold a confirmation hearing on its plan in April.
US Airways disclosed its initial hostile bid for Delta on Nov. 15. US Airways later raised its bid by nearly 20 percent in hopes of swaying Delta's official committee of unsecured creditors.
"Using the bankruptcy process the right way, Delta people have transformed their company's business model," Delta Chief Executive Gerald Grinstein said in a statement. "Our focus now is on the work still before us to emerge from Chapter 11 this spring as a strong, healthy and vibrant global competitor."
In his own statement, Doug Parker, chief executive of based US Airways, based in Tempe, Ariz., said he was disappointed by the decision by the creditors committee. His airline quickly withdrew its bid, which was set to expire Thursday if the committee did not show support for moving the bid forward.
Comments
- It counts, even if it's 'business' 5:42 p.m.
- Biblical verses traslated differently 5:42 p.m.
- Christmas movies with a message 5:42 p.m.
- Blessed are the conservatives? 5:42 p.m.
- Religion briefs 5:42 p.m.
- Working to feed the multitudes 5:42 p.m.
- World religion briefs 5:42 p.m.
- Exhibit celebrates sacred art 5:42 p.m.
- There's no one to root for on 'Race' 5:42 p.m.
- Don't guess at marital problems cause 5:42 p.m.
- Mr. Football 2009: Tuni Kanuch
- 5A high school football All-State
- Expert paid $500K for Mitchell report
- Miller predicted Tiger's rough road
- Utah Jazz going green with unis
- Harpring's NBA career is over
- 4A high school football: All-State
- Nutty Putty Cave to be sealed today
- MVPs wrap up stellar prep careers
- Jazz: Miles, Kirilenko to play Friday
- Hall reprimanded by MWC
408 - Max Hall issues apology
393 - Hall's pain reflects self-betrayal
362 - Why is Y. ignoring spew of hatred?
293 - Utes won't respond to Hall
278 - BYU says Hall incident resolved
247 - Letters: Liberal because LDS
229 - 2 citations issued at Y.-U. game
188 - Hate not limited to 1 in-state rivalry
181 - Aggies shoot past Cougars
179
AP biz writer Chip Cutter offers tips for people who have picked up...
First, a big thank you to all who posted questions here for me to ask...
Wow. 500000 dollars for a report of 200 plus pages. No wonder psychiatry...
Mitchell is not going away for life, folks. Get real.
I've been to Antelope Island many times and always respect the rule that says...
Could every one tell their kids to stop? Thanks!
It's gotta be the end of the world!
Tate never had cancer....get your facts straight! He transferred after his...
The Oregonian says Oregon State will most likely go to the Vegas Bowl against...
Re: What?! I love how you think only pregant women live in SLC--and that...
Thank God the mother And child are doing welk
@The dozen or so Muslims... "I've known have been, to a person, better humans...


You can be the first to comment on this story.