- Oct 30, 2006
- 1,466
- 2
DL has taken a big step forward in its efforts to emerge from bankruptcy as a standalone carrier. This step appears to accomodate DL's plan to emerge from bankruptcy by this Spring.
Yesterday, DL won approval for its proposed reorganization plan that is predicated on a debt-for-equity swap with its unsecured creditors and $2.5 billion in exit financing.
The Judge sanctioned the disclosure statement for the plan, which will now be sent to creditors for a vote, and then scheduled a confirmation hearing for April 25.
As noted by an earlier poster, DL resolved all objections to the disclosure statement.
The plan is being financed through $2.5 billion in exit loans, which ranks as the 10th highest such package ever and the fourth highest in the past 12 months. The package is being fronted by a consortium made up of J.P. Morgan, Goldman, Sachs, Merrill Lynch, Lehman Brothers, UBS, and Barclays Capital.
The exit financing consists of a $1 billion first-lien revolving credit line, a $500 million first-lien term loan and a $1 billion second-lien term loan.
DL said it would use the exit financing to repay the $2.1 billion DIP loan being provided by GE Capital and American Express. The financing will also be used to make additional plan payments and add to its cash on hand.
By the looks of things, DL Delta may reach its target for possible emergence from Chapter 11 protection in the spring of this year (late spring).
Yesterday, DL won approval for its proposed reorganization plan that is predicated on a debt-for-equity swap with its unsecured creditors and $2.5 billion in exit financing.
The Judge sanctioned the disclosure statement for the plan, which will now be sent to creditors for a vote, and then scheduled a confirmation hearing for April 25.
As noted by an earlier poster, DL resolved all objections to the disclosure statement.
The plan is being financed through $2.5 billion in exit loans, which ranks as the 10th highest such package ever and the fourth highest in the past 12 months. The package is being fronted by a consortium made up of J.P. Morgan, Goldman, Sachs, Merrill Lynch, Lehman Brothers, UBS, and Barclays Capital.
The exit financing consists of a $1 billion first-lien revolving credit line, a $500 million first-lien term loan and a $1 billion second-lien term loan.
DL said it would use the exit financing to repay the $2.1 billion DIP loan being provided by GE Capital and American Express. The financing will also be used to make additional plan payments and add to its cash on hand.
By the looks of things, DL Delta may reach its target for possible emergence from Chapter 11 protection in the spring of this year (late spring).