Home | Business News | Browse by Publication | B | Business Travel News

Delta to emerge alone: carrier's creditors reject us airways bid after delta scores $2.5 billion in exit financing.

Article Excerpt
US Airways last week withdrew its hostile takeover bid for Delta Air Lines after Delta creditors shunned the offer in favor of Delta's plan to emerge from Chapter 11 as a stand-alone airline. The rejection signaled the end of more than a two-month feud between the airlines but does not preclude further attempts at domestic airline consolidation, analysts said.

In the week leading up to creditor rejection, a U.S. Senate committee greeted the proposed merger with skepticism, Delta moved forward with its reorganization plan by securing $2.5 billion in exit financing and analysts downplayed the possibility of a successful bid.

In a statement released last week, Delta's Official Committee of Unsecured Creditors threw its support behind the reorganization plan Delta submitted in December as the alternative to a US Airways acquisition. "The Creditors' Committee reached this determination after engaging in extensive discussions with representatives of Delta and US Airways over the last two months and upon consideration of the advice of the Creditors' Committee's legal, financial and industry advisors," the committee said.

"It is now clear that there will not be an opportunity with the Committee to move forward in a timely or productive manner and as a result, we have withdrawn our offer," US...

View this article FREE - Now for a Limited Time, try Goliath Business News
Free for 3 Days!