From Deseret News archives:

Creditors paid heed to regulatory risks

Published: Thursday, Feb. 1, 2007 10:22 a.m. MST
 |  E-MAIL | PRINT | FONT + - 
If one or more classes of creditors do not approve the plan, Delta could still confirm the plan through a so-called cramdown, a maneuver in which it must show the court that the dissenting class will receive more under the plan than it would under a Chapter 7 liquidation.

The company also would have to show that any subordinate class, such as shareholders, would get nothing in the way of recovery under the reorganization plan. Delta already has met that second test because its plan calls for current shares of the company to be wiped out.

If a competing plan were filed, creditors would vote on each individually. There have been bankruptcy cases where two competing reorganization plans were approved by creditors; in such a case, a judge decides which plan is confirmed after holding a hearing to determine which plan is in the "better interest" of the creditors.

Arizona Gov. Janet Napolitano said Wednesday she believes US Airways will move forward and look for other opportunities.

"They seem to be doing very, very well," Napolitano said. "And since I consider them a hometown airline, I think that's a good thing."

US Airways had said it would have kept the Delta name if it bought Delta, but it hadn't said where the merged company would be based.

Georgia Lt. Gov. Casey Cagle said Delta's stand-alone plan is in "the best interest of all citizens, not only for Georgia, but for our nation."

Story continues below

Associated Press Writers Chris Kahn in Phoenix and Doug Gross in Atlanta contributed to this report.

Comments

You can be the first to comment on this story.

Related content
previousnext

Latest comments

Hall mouths off about hate of Utah

So I guess it's ok for my me to teach my son to hate BYU fans and Mormons...

wonder why they're not undefeated? no class max is selish and looks out for...

Utahns back anti-bias laws

To: So Then, 4:28 p.m. You need to get your facts correct. The American...

This hatred and lack of integrity all stems from the head coach of the BYU...

Hall mouths off about hate of Utah

I want to apologize to the University of Utah and its team for Hall's...

Hall comes up big when it counts

Can you give specifics on Brian Johnson's comments (like articles, TV...

Cougar fans, quit apologizing to these poor sport utes for Max's comments or...

Hall mouths off about hate of Utah

FYI Cougar Fans, Beer is not allowed on Campus. Sound like Max is breaking...

Utes could end up in San Diego

I agree with your win is a win and I'm glad you realize this was our so...

Cougars honor 1984 champs

The National championship in college football doesn't always produce a true...

Advertisements