Delta sets the date for reorg plan

[pit_needs_help]

http://yahoo.reuters.com/financeQuoteCompa...n2851980_newsml
Should have idea if creditors like stand-alone plan by April

 

[Gilding the Lily]

http://yahoo.reuters.com/financeQuoteCompa...n2851980_newsml
Should have idea if creditors like stand-alone plan by April

Keep in mind, US will likely officially file its own POR for DL after the exclusivity period has tolled, which, of course, will likely run before the creditors vote on DL's POR. So, although the creditors will be voting exclusively on the DL plan, they will likely been given a chance to compare the two plans side-by-side.

US's plan will likely be modified a bit from the plan they presented in November.

 

[ClueByFour]

Keep in mind, US will likely officially file its own POR for DL after the exclusivity period has tolled, which, of course, will likely run before the creditors vote on DL's POR. So, although the creditors will be voting exclusively on the DL plan, they will likely been given a chance to compare the two plans side-by-side.

US's plan will likely be modified a bit from the plan they presented in November.

Unlikely. There is an order which current prohibits anyone but DL from filing a plan until 15-Feb-2007 and assuming they get the disclosure statement approved, it keeps anyone else from soliciting acceptance of alternative plans until 16-April-2007. You can see this on deltadocket.com (it is #3485).

As it stands, US cannot file it's own POR so long as DL gets the disclosure approved by 15-Feb and voting wrapped by the middle of april.

And, short of massive creditor involvement before then, it's unlikely that US will see enough of the books to file an adequate POR between now and Feb-7.

I have mentioned in other threads that Doogie has little leverage in this regard--this is illustrative of why.

 

[Gilding the Lily]

Unlikely. There is an order which current prohibits anyone but DL from filing a plan until 15-Feb-2007 and assuming they get the disclosure statement approved, it keeps anyone else from soliciting acceptance of alternative plans until 16-April-2007. You can see this on deltadocket.com (it is #3485).

As it stands, US cannot file it's own POR so long as DL gets the disclosure approved by 15-Feb and voting wrapped by the middle of april.

And, short of massive creditor involvement before then, it's unlikely that US will see enough of the books to file an adequate POR between now and Feb-7.

I have mentioned in other threads that Doogie has little leverage in this regard--this is illustrative of why.

I think you seriously misread my post. As I stated in my last post, US will file AFTER the exclusivity period has tolled, NOT BEFORE.

 

[Gilding the Lily]

As it stands, US cannot file it's own POR so long as DL gets the disclosure approved by 15-Feb and voting wrapped by the middle of april.

Let me put it this way: If I were a creditor, and I knew that another party-in-interest was likely going to file a plan (likely modified from the last one presented), would I vote to accept the plan before that party-in-interest had an opportunity to file its plan? No, I wouldn't... and I do not think that it is likely that the creditors will vote before US has that opportunity either. But perhaps I am giving the creditors too much credit... maybe they don't want to look at two official plans to determine which would give them the most bang for the buck.

 

[flyingcat]

Well by time the court date comes around Gordone Bethune should have his recommendation to the creditors committee.

I wonder if it will become public before Feb. 7?

 

[Smitty]

Unlikely. There is an order which current prohibits anyone but DL from filing a plan until 15-Feb-2007 and assuming they get the disclosure statement approved, it keeps anyone else from soliciting acceptance of alternative plans until 16-April-2007. You can see this on deltadocket.com (it is #3485).

As it stands, US cannot file it's own POR so long as DL gets the disclosure approved by 15-Feb and voting wrapped by the middle of april.

And, short of massive creditor involvement before then, it's unlikely that US will see enough of the books to file an adequate POR between now and Feb-7.

I have mentioned in other threads that Doogie has little leverage in this regard--this is illustrative of why.

Actually, I think you are wrong. If US Airways has standing to file a plan, it is allowed to file its plan after February 15. US Airways has probably already figured out how to acheive standing, like purchasing a claim or something similar.

It is possible to have two plans filed at the same time. But if this happens, the unsecured creditors will only be able to vote on Delta's plan until April 16, the end of its exclusive period to solicit acceptance. If the debtor obtains the required acceptances within the 180-day exclusive period, then competing plans are foreclosed until it can be determined whether the debtor's plan will be confirmed.