Delta Bondholders Seek To Repossess Five Jets

Law360, New York (May 4, 2006, 12:00 AM EDT) -- Already in multiple battles with various airports over unpaid leases and taxes, bankrupt Delta Air Lines Inc. may soon find itself losing some of its airplanes.

Wells Fargo Bank, one of the trustees for a group of Delta bondholders, is now seeking to repossess five airplanes that the company had pledged as collateral for a 2004 debt offering.

In a lawsuit filed on Wednesday in the U.S. Bankruptcy Court in Manhattan, Wells Fargo said it wanted five MD-90s returned under Section 1110 of the Bankruptcy Code,...
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