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Posted: 9/12/2005 3:09:29 PM EDT
[Last Edit: 9/12/2005 3:14:30 PM EDT by IAMLEGEND]
link

By HARRY R. WEBER
AP Business Writer


ATLANTA


Delta Air Lines Inc., the nation's third-largest carrier, plans to file for bankruptcy protection in New York as early as Wednesday, according to an industry consultant who has been informed of the company's plans.

The consultant, who was not authorized to disclose the information and thus spoke on condition of anonymity, said Delta is working with GE Commercial Finance and other creditors to arrange roughly $2 billion in debtor-in-possession financing. The money would allow the airline to operate in bankruptcy.

Delta, which has lost nearly $10 billion since January 2001, likely will pledge the few remaining assets not already pledged as collateral for loans as part of the bankruptcy financing agreement, the consultant said. "There is nothing unencumbered after this," according to this consultant.

The consultant said the filing was expected to come Wednesday afternoon but could be pushed to Thursday depending on when the bankruptcy financing is completed.

A Delta spokeswoman declined to comment, saying no decision about bankruptcy has been made. Two spokesmen for GE Commercial Finance also declined to immediately comment. Reached at his Connecticut home Monday, Delta director Edward H. Budd said, "Anything that's going to be talked about at Delta is going to come from Delta." Calls to the homes of four other company directors were not answered.

The bankruptcy filing would come as Atlanta-based Delta has been unable to right itself amid persistently high fuel costs and heavy debt and pension obligations.

The filing would make Delta the third major U.S. carrier to enter Chapter 11 since the 2001 terrorist attacks, joining Elk Grove Village, Ill.-based UAL Corp., parent of United Airlines, and Arlington, Va.-based US Airways Group, Inc., which has filed twice in the last three years.

Some smaller carriers, including Honolulu-based Hawaiian Airlines and Indianapolis-based ATA Airlines Inc., also have filed for bankruptcy in recent years.

If it follows the pattern of most big airline bankruptcies, Delta's existing shares would eventually become worthless and portions of the airline's existing debt would be exchanged for equity in a reorganized Delta. One major question is whether Delta would go the route of UAL and US Airways and seek to turn over its pilot and other employee pension plans to the federal government.

Delta's total debt is roughly $20.5 billion, and it listed $21.6 billion in assets as of June 30. The asset figure would make Delta's bankruptcy the ninth-largest in U.S. history, according to bankruptcy tracker New Generation Research, Inc.

Delta has announced up to 24,000 job cuts over the last four years. In September 2004, it also said it would shed its Dallas hub as part of a sweeping turnaround plan aimed at saving the airline. The plan was hampered, however, by soaring fuel costs.

Fort Worth, Texas-based AMR Corp., the parent of American Airlines, the nation's biggest carrier, teetered on the verge of bankruptcy before winning deep concessions from its employees.

The other legacy carriers, those with a large presence in multiple regions prior to deregulation in 1978, are Eagan, Minn.-based Northwest Airlines Corp. and Houston-based Continental Airlines Inc.

Northwest has also been said to be close to bankruptcy.

Delta's stock tumbled 19 cents, or 17.3 percent, to 91 cents in afternoon trading Monday on the New York Stock Exchange.

Link Posted: 9/12/2005 3:10:29 PM EDT
Link Posted: 9/12/2005 3:12:31 PM EDT
There was a dude here who BOUGHT shares of Delta at $1.54 BECAUSE their bankruptcy was inevitible.
Link Posted: 9/12/2005 3:13:16 PM EDT
[Last Edit: 9/12/2005 3:14:38 PM EDT by GabbasaurusRex]
Their in-flight meals suck anyway.
Link Posted: 9/12/2005 3:13:58 PM EDT

Originally Posted By raven:
There was a dude here who BOUGHT shares of Delta at $1.54 BECAUSE their bankruptcy was inevitible.



Astute.

No, wait...WTF?!
Link Posted: 9/12/2005 3:14:19 PM EDT

Originally Posted By GabbasaurusRex:
Good. Their in-flight meals suck.



What meals?
Link Posted: 9/12/2005 3:15:31 PM EDT

Originally Posted By JosieWales:

Originally Posted By GabbasaurusRex:
Good. Their in-flight meals suck.



What meals?


The box with the soggy sandiwch.
Link Posted: 9/12/2005 3:17:06 PM EDT

The consultant, who was not authorized to disclose the information and thus spoke on condition of anonymity, said


This kind of crap pisses me off.
Link Posted: 9/12/2005 3:18:28 PM EDT
They do that just to fuck over their unions.
Link Posted: 9/12/2005 3:29:27 PM EDT
And that's bad? Overpriced labor is Delta's biggest problem. Let's roll!!
Link Posted: 9/12/2005 3:40:19 PM EDT
Great. I have to fly Delta this week.

Crappy attitude from Delta employees, here I come.
Link Posted: 9/12/2005 3:50:14 PM EDT


Years ago, Delta was considered THE airline. In fact, IIRC, it "sucked" because nobody would quit or retire so promotions were few and far between.

I like Delta.

Link Posted: 9/12/2005 4:18:27 PM EDT
Hmmm...I have two tickets for anywhere in the world they fly...wonder if I should use them soon?
Link Posted: 9/12/2005 4:24:56 PM EDT
Link Posted: 9/12/2005 5:09:57 PM EDT
I flew Delta several times on business, sometimes first class, and by and large the experience sucked.
Link Posted: 9/12/2005 5:19:01 PM EDT

Originally Posted By cmjohnson:
I'll buy some of their stock now while it's still available. Not more than I can afford to gamble away...but it doesn't have to pick up much to be well worth the risk.

Somehow, I think Delta wil recover.

CJ



So what happens to stock holders if they file Chapter 11? I thought the stock would become worthless!?!?
Link Posted: 9/12/2005 5:45:14 PM EDT
they're an airline
uncle money bags sam will bail them out
Link Posted: 9/12/2005 5:47:20 PM EDT

Originally Posted By raven:
There was a dude here who BOUGHT shares of Delta at $1.54 BECAUSE their bankruptcy was inevitible.



Shareholders get paid LAST (i.e. never).
Link Posted: 9/12/2005 5:50:04 PM EDT
I thought their new marketing was going to help.
DELTA
Link Posted: 9/12/2005 5:50:58 PM EDT
Sure.. declare bankrupcy and then buy another company.... Worked for K-mart

I wonder if they can buy United?
Link Posted: 9/12/2005 5:53:10 PM EDT
[Last Edit: 9/12/2005 5:53:40 PM EDT by raven]

Originally Posted By TheCynic:

Originally Posted By raven:
There was a dude here who BOUGHT shares of Delta at $1.54 BECAUSE their bankruptcy was inevitible.



Shareholders get paid LAST (i.e. never).



Yep. If your believe in a publicly-held firm that is going bankrupt, what you buy is their DEBT. As someone said, the owners need to pay off creditors before they can hope to see profit from equity in bankruptcy situations.
Link Posted: 9/12/2005 6:35:58 PM EDT

Originally Posted By uncle_frank:
They do that just to fuck over their unions.





ARH

Link Posted: 9/12/2005 6:39:27 PM EDT

Originally Posted By 10mmFan:
And that's bad? Overpriced labor is Delta's biggest problem. Let's roll!!



Overpriced labor to keep the unions out.

My best friend works for the Tech Ops plating lab and the only reason they are filing is the new law that is gonna take effect next month.


There is a reason all the major airlines do service through Tech ops, its the best and the planes stay in the air. Mind you Tech ops is the only division of Delta that makes money. And trust me, it is quite nice not having unions at work.
Link Posted: 9/12/2005 6:46:59 PM EDT
Unless I'm mistaken, bankruptcy pretty much destroys the stock you have in a company. Even if they recover, the stock you held before the bankruptcy is either worthless or only worth a small percentage of what it was worth.
Link Posted: 9/12/2005 6:50:10 PM EDT
Yup, I've got my Scottrade account waiting for it. I'll buy up at the lowest possible share price.
Link Posted: 9/12/2005 6:51:59 PM EDT
D on't
E ver
L eave
T he
A irport
Link Posted: 9/12/2005 6:52:39 PM EDT

Originally Posted By DzlBenz:
D on't
E ver
L eave
T he
A irport




Landings are mandatory, Takeoffs are optional
Link Posted: 9/12/2005 6:52:51 PM EDT
They said they would do it. I am not surprised.
Link Posted: 9/12/2005 7:37:08 PM EDT
I've got a great idea, we can load up the looters into the surplus Delta aircraft and fly 'em off. Just give the pilots some parachutes and let 'em jump out, "Sayonara!"
Link Posted: 9/12/2005 7:51:19 PM EDT
Ahhh, I remember the days when America was America and Delta was Delta...

D on't
E ven
L et
T hem
A board





Originally Posted By Belfry_Express:

Originally Posted By DzlBenz:
D on't
E ver
L eave
T he
A irport




Landings are mandatory, Takeoffs are optional

Link Posted: 9/12/2005 8:33:53 PM EDT
I hope they don't take away my flight benefits.
Link Posted: 9/12/2005 8:37:21 PM EDT
This sucks. If Delta liquidated, it would seriously FUCK the southeast section of our country/
Link Posted: 9/12/2005 8:47:22 PM EDT
My Dad has something like three million frequent flyer miles with them. What will happen with that?
Link Posted: 9/12/2005 9:13:05 PM EDT
[Last Edit: 9/12/2005 9:18:16 PM EDT by BillofRights]

Originally Posted By cmjohnson:
I'll buy some of their stock now while it's still available. Not more than I can afford to gamble away...but it doesn't have to pick up much to be well worth the risk.

Somehow, I think Delta wil recover.

CJ





Delta probably WILL recover, but not before dumping all the unsecured debt, Shareholders, and pensions.

Don't do it. I know the bidness, and it is all part of the natural cycle. Don't be a sucker.

The way that shareholders can be screwed out of their "ownership" is a complete sham. A crime and a travesty. The stock is literally not worth the paper it is printed on. Did I mention DON'T DO IT!!!!

If you have money to burn spend it on Ammo and Tannerite, or simply send it to me for this free advice.



I do have some 160 shares of TWA that I can let you have for the same price.
Link Posted: 9/13/2005 2:14:16 AM EDT
Link Posted: 9/13/2005 5:35:08 AM EDT
The only union they need to get rid of is the pilot's and FA's. The rampers aren't even in a union.
Link Posted: 9/13/2005 5:40:41 AM EDT
Originally Posted By uncle_frank:
They do that just to fuck over their unions.
--------------------------------------------------------------------------------


And the unions deserve to get fucked over.

Unions are the prime cause of American companies shutting down domestic production
operations and letting the Chinese, Indians, and Pakistanis make the product instead.

The result is a hole in the side of the US economy that drains money out of our economy
and into the other nations, enriching them while taking money and jobs from us.

Fuck the unions. I was in one and would never, ever even consider joining another. It was the
most worthless, useless POS I could ever have NOT imagined. When I needed help, the
much vaunted "Union solidarity" never materialized. I barely even got lip service from them.

I want to see unions OUTLAWED.




I agree. They have destroyed my home state.
Link Posted: 9/13/2005 5:46:11 AM EDT
Ive been flying delta too and from work for the last 3 years. Ive had no real problems from the US side of things. Delta's overseas employees suck, like their forklift drivers who punch holes in the side of the plane resulting in an hour delay leaving downrange

A couple of times ive had to fly other airlines due to caps in how much the embassy will pay for tickets, those trips sucked beyond anything I have ever expirenced
Link Posted: 9/13/2005 5:46:42 AM EDT
Father-in-Law is a retired Delta pilot, and Mother-in-Law is a Delta flight attendant who plans on retiring in another 3-5 years (FWIW she has been a Flight Attendant w/ Delta for 47 years now)
I think if Delta goes under my ammo budget is going to be adversly impacted

echo6
Link Posted: 9/13/2005 5:47:04 AM EDT
I love it when the union elite close a company rather than give in one iota. Later on the now out of work rank and file members are scratching their heads wondering how the fuck that helped them.
Link Posted: 9/13/2005 5:56:54 AM EDT

I love it when the union elite close a company rather than give in one iota. Later on the now out of work rank and file members are scratching their heads wondering how the fuck that helped them.



So just which union elites are doing damage to Delta?

Serious question btw...
Link Posted: 9/13/2005 6:06:07 AM EDT

Originally Posted By FishKepr:
My Dad has something like three million frequent flyer miles with them. What will happen with that?



Link Posted: 9/13/2005 6:07:56 AM EDT
I have first class tickets to go to my wedding in St. Thomas in October. I hope they are still good.
Link Posted: 9/13/2005 6:08:57 AM EDT
[Last Edit: 9/13/2005 6:09:21 AM EDT by JIMBEAM]

Originally Posted By TacticalMan:

Originally Posted By FishKepr:
My Dad has something like three million frequent flyer miles with them. What will happen with that?






He needs to use those miles immediately or transfer them to another program(if he can).

Link Posted: 9/13/2005 6:10:45 AM EDT

Originally Posted By TheCynic:

Originally Posted By raven:
There was a dude here who BOUGHT shares of Delta at $1.54 BECAUSE their bankruptcy was inevitible.



Shareholders get paid LAST (i.e. never).

Yeah but if he went SHORT then it is a different story.
Link Posted: 9/13/2005 12:46:11 PM EDT

Originally Posted By KC-130 FLT ENG:

I love it when the union elite close a company rather than give in one iota. Later on the now out of work rank and file members are scratching their heads wondering how the fuck that helped them.



So just which union elites are doing damage to Delta?

Serious question btw...



The pilots.

The beginning of this yeat alot of them retired so they could get their money and not take a paycut. Firetrucks were spraying aircraft everyday.
It's really hard to to listen to them cry about selling the ranch in south Texas when you are about to lose your job.
Link Posted: 9/13/2005 12:52:00 PM EDT

Originally Posted By sharky30:
they're an airline
uncle money bags sam will bail them out



9/11 they already have and should not this time. I f a business cannot stay in the black it is not the duty of the Gov. to bail them out. The airline industry has needed to modernize for years. More efficient planes are just a start. A tube with wings is hardly efficient, flying wings are much more efficient they have known this since tyhe 50s, more fuel efficient engines are available, then their are the Unions. Unions are organized extortion and are killing the airline and auto industry.
Link Posted: 9/13/2005 12:55:06 PM EDT

Originally Posted By Admiral_Crunch:
Unless I'm mistaken, bankruptcy pretty much destroys the stock you have in a company. Even if they recover, the stock you held before the bankruptcy is either worthless or only worth a small percentage of what it was worth.



Till someone buys it out. Think Lands End-Sears-KMart those still holding stock as they aquired and merged got a decent return.
Link Posted: 9/13/2005 12:58:53 PM EDT
It was I who bought $300 worth at 1.43. I gambled a total of $305...and plan on throwing another $300 or so in. $600? Not really worth doing, but it is a fun gamble.
Link Posted: 9/13/2005 1:29:01 PM EDT

Originally Posted By ALLANJ:

Originally Posted By KC-130 FLT ENG:

I love it when the union elite close a company rather than give in one iota. Later on the now out of work rank and file members are scratching their heads wondering how the fuck that helped them.



So just which union elites are doing damage to Delta?

Serious question btw...



The pilots.

The beginning of this yeat alot of them retired so they could get their money and not take a paycut. Firetrucks were spraying aircraft everyday.
It's really hard to to listen to them cry about selling the ranch in south Texas when you are about to lose your job.



Dont blame the pilots. They get fucked over all the time. They are underpaid for thier level of responsibilty. Would you want someone making 30k a year flying your family around the busy skies in a 70 million dollar aircraft that requires YEARS of training to even operate?
Link Posted: 9/13/2005 1:45:33 PM EDT

Originally Posted By CFII:

Originally Posted By ALLANJ:

Originally Posted By KC-130 FLT ENG:

I love it when the union elite close a company rather than give in one iota. Later on the now out of work rank and file members are scratching their heads wondering how the fuck that helped them.



So just which union elites are doing damage to Delta?

Serious question btw...



The pilots.

The beginning of this yeat alot of them retired so they could get their money and not take a paycut. Firetrucks were spraying aircraft everyday.
It's really hard to to listen to them cry about selling the ranch in south Texas when you are about to lose your job.



Dont blame the pilots. They get fucked over all the time. They are underpaid for thier level of responsibilty. Would you want someone making 30k a year flying your family around the busy skies in a 70 million dollar aircraft that requires YEARS of training to even operate?



We all took pay cuts and they didn't. They seem to be doing ok @ 200k a year.
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