Thursday, February 1, 2007
© Copyright 2014
Gwinnett Daily Post
ATLANTA - Delta Air Lines Inc.'s official creditors committee said Wednesday it will support Delta's stand-alone reorganization plan, rejecting US Airways' hostile bid to buy Delta.
The committee said in a statement its decision was reached after a lengthy review of both Delta's proposal and US Airways' proposal.
The creditors committee is a key constituency in Delta's Chapter 11 case. Its decision prompted US Airways to immediately withdraw its nearly $10 billion offer.
US Airways had asked for support from the committee, and set a deadline of today.
Delta has said it projects it will be worth $9.4 billion to $12 billion when it emerges from bankruptcy by the middle of this year.
The official creditors committee said in its statement that it ''has determined that it will support the stand-alone plan of reorganization as finally agreed upon between Delta and the Creditors Committee that will be filed later this week.''