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View Full Version : Delta to file for Bankruptcy this week. (Now Confirmed)



T-Bird76
09-12-2005, 10:54 AM
***It is now confirmed that Delta will file for Chap 11 this week, most likely on Wed.*** (confirmed from the AP)

Reports from Delta have indicated that the struggling carrier is in the final stages of securing DIP financing (debtor-in-possession) which will allow it to continue normal operations once it files for Chapter 11 Bankruptcy as early as Thursday of this week.

Delta which has posted losses for sometime now was greatly impacted by Hurricane Katrina and the sudden rise in fuel prices. In order to receive its DIP financing Delta will have to in a sense mortgage its most valuable assets including owned aircraft, Comair, their Tokyo and London routes, gates at LGA, its share in Air-Elite, spare parts, and other capital equipment.

Travelers do not have to worry about their travel plans when and if DAL files for Chap 11. All tickets will be honored and it will be business as usual for Delta. Chap 11 bankruptcy means the airline will be protected from its creditors and allowed to reorganize and dissolve some of its debt. This scenario is similar to what UAL and US are going through right now. No need to use your mileage or switch tickets. Even in the unlikely event Delta filed for Chap 7 total liquidation and shut down mileage programs and most tickets would be honored by other carriers.

IslipWN
09-12-2005, 02:52 PM
Thank god! I was going to switch all my tickets tonight! You got me scared before Tommy. I almost wasted my 200,000+ miles with them because I thought they were going to go belly up.

Ethan
09-12-2005, 04:30 PM
US, UA, and TZ are all in Chap. 11 right now. No operational issues there...(although you could probably argue the latter)

EK

Alex T
09-12-2005, 10:59 PM
That is just sad. Another big airline in the BK area. Hope none of them become like TWA :(

JOE AND THE OTHERS U DONT NEED TO WORRY ABOUT UR TICKETS AND MILEAGE, CONITUE TO BOOK THEM AND USE UR MILEAGES AS UD LIKE.

hope all goes well for DL.

Alex