Delta reorganization plan gets push

[Gilding the Lily]

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).

 

[Harry Callahan]

I wish you all the best in "keeping Delta your Delta".

 

[luv2fly]

How did you make out in all this Lily? I believe you claimed at one point to have a vested interest in the proposed US/DL merge.

 

[Gilding the Lily]

How did you make out in all this Lily? I believe you claimed at one point to have a vested interest in the proposed US/DL merge.

Luv,

I do have an interest in airline consolidation and airline bankruptcy. Consolidation done through the in-court reorganization process would further those interests.

Although I was partial to the US/DL proposal as compared to other potential mergers, my interest was not, and is not, limited to either DL or US. Rather, my interests are furthered through most consolidation and/or bankruptcy efforts. In other words, I didn't have US or DL "in my corner."

Nonetheless, I have come out pretty well (Dl and NW still in bk) and I await the next round of consolidation efforts. It will cool down for a few months but I expect it to get a bit hotter come Fall.

 

[PHLfa88]

Historically non-union, Delta urges workers to "Keep Delta My Delta." But what does that mean when Delta's "reorganization plan" calls for eliminating 7000-9000 jobs by the end of this year. So much for "Keep Delta My Delta." The carrier's pro-IAM ramp workers have a better idea: "Make Delta Our Delta."


Interesting!! From an Article in The CounterPunch-Petrolia,CA

 

[PhxMama]

Can anyone post the link to this? Couldnt find it? Would be an tneresting read.

 

[WNrforlife]

Historically non-union, Delta urges workers to "Keep Delta My Delta." But what does that mean when Delta's "reorganization plan" calls for eliminating 7000-9000 jobs by the end of this year. So much for "Keep Delta My Delta." The carrier's pro-IAM ramp workers have a better idea: "Make Delta Our Delta."
Interesting!! From an Article in The CounterPunch-Petrolia,CA

Actually, it was from an article by a left-wing organization. No fact involved, just spreading rumors to get the troops to sign a card. Typical union shinanigans....

http://www.labornet.org/news/0207/finamor.htm

 

[WNrforlife]

Why is it "Shenanigans" when hourly workers band together to protect and promote their interests but perfectly OK for Corporate America to hire the like of Jerry Glass to crush hourly workers?

How do YOU spell hypocrisy?

The shenanigans refer to the statement regarding the loss of 7,000- 9,000 jobs this year. Where's the proof in that statment?

The unions just want to scare the workers into signing a card so that they can collect dues from them. Nothing else. Do you really think that a union can save anyone's job? That is what they want you to believe - don't buy it. :blink: :blink: :blink:

 

[brokenwrench]

The shenanigans refer to the statement regarding the loss of 7,000- 9,000 jobs this year. Where's the proof in that statment?

The unions just want to scare the workers into signing a card so that they can collect dues from them. Nothing else. Do you really think that a union can save anyone's job? That is what they want you to believe - don't buy it. :blink: :blink: :blink:

The job loss number is accurate. However it is about 2 years old and comes from a DL memo. The job cuts that it speaks to have already taken place. But the IAM has never let the facts get in the way of getting dues money out of your pockets and into there pocket.

 

[whatkindoffreshhell]

Thread drift folks.

Let's get back to this thread's topic of why DL is going to be someone's bich. Only a matter of time.

(oh yeah, the union stuff -- how about simple election of officers and corresponding reduction in pay when their clients get shaved...)

 

[Gilding the Lily]

The job loss number is accurate. However it is about 2 years old and comes from a DL memo. The job cuts that it speaks to have already taken place. But the IAM has never let the facts get in the way of getting dues money out of your pockets and into there pocket.

I didn't know that those cuts have already been fully completed. When the "7,000 to 9,000" talk was making news, DL said that those cuts wouldn't be completed until the end of 2007. And those numbers didn't include the 6000 layoffs that management announced at the end of 2004/beginning of 2005.

 

[NYCDelta]

I didn't know that those cuts have already been fully completed. When the "7,000 to 9,000" talk was making news, DL said that those cuts wouldn't be completed until the end of 2007. And those numbers didn't include the 6000 layoffs that management announced at the end of 2004/beginning of 2005.

They're done as far as In-Flight Service goes. In fact, we just recalled 1,250 F/A's back from leave and furlough.

 

[Gilding the Lily]

They're done as far as In-Flight Service goes. In fact, we just recalled 1,250 F/A's back from leave and furlough.

thanks.

 

[DalMD88]

I didn't know that those cuts have already been fully completed. When the "7,000 to 9,000" talk was making news, DL said that those cuts wouldn't be completed until the end of 2007. And those numbers didn't include the 6000 layoffs that management announced at the end of 2004/beginning of 2005.

They are also done in Mtc. They are recalling to ATL and hiring in the Northeast. I bet they will go through the ATL recall list before all the openings will be filled.