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Lenders Blast Delta’s Proposed Dispute Resolution Plan

Law360 (October 9, 2006, 12:00 AM EDT) -- A $4 billion battle may be brewing between bankrupt Delta airlines and the companies that financed its aircraft, after several of the lenders objected to a Delta proposal for resolving disputes over their leverage-lease claims.

Delta received outside financing for 270 of its planes through complex transactions known as leverage-lease agreements.

Under the agreements, financiers put up the cash for plane leases in exchange for tax deductions on the interest accrued in the deals and the right to collect compensation in the event the airlines end...
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