Delta Asks To Repay $242M In Debt To Resolve Suit

Law360, New York (July 11, 2006, 12:00 AM EDT) -- Faced with a lawsuit seeking to repossess five of its jets, Delta Air Lines has asked the bankruptcy court to sign off on a $242 million plan to repay bondholders and refinance the debt.

If the U.S. Bankruptcy Court for the Southern District of New York approves the deal, bondholders could stand to make a fully recovery of $235 million in debt in addition to more than $7 million in unpaid interest from the new financing and Delta’s reserves, according to court documents filed Friday....
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