Judge: U.S. Government Owes Delta Air Lines $7M

Law360, New York (November 14, 2006, 12:00 AM EST) -- A judge has ordered the U.S. government to pay Delta Air Lines Inc. at least $7 million for flights purchased for U.S. military personnel since the beleaguered airline filed for bankruptcy in September 2005.

Judge Adlai S. Hardin of the U.S. Bankruptcy Court in Manhattan ruled earlier this month that the government’s rights as a creditor in a bankruptcy case were no different from those of other creditors.

Therefore, Judge Hardin ruled, the government is obligated to pay the Atlanta-based airline for flights provided after the...
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