Delta Air Lines to present recovery plan

Published: 09/02/07

Delta Air Lines took a big step towards a return from Chapter 11 bankruptcy protection today after a US court gave the carrier permission to present a recovery plan to its long suffering creditors. In order for the airline to leave the Chapter 11, Delta's creditors must approve the payment schedule of debt that the airline presents to them, and agree to the terms that the airline offers.

If the Atlanta based carrier fails to gain approval for its restructuring, its return to normality may be delayed by several months, although all flights to New York and other destinations will continue to operate as usual.

The Airline currently owes around USD15 billion to its many creditors.

Delta Air Lines recently saw off a bid from rival US Airways that would have merged the two carriers to become the world's largest carrier.

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