Delta Air Lines, in a deal to avoid repossession of five jets, has asked a bankruptcy court for plan approval to repay more than $242 million to holders of bonds and to refinance the debt. If approved, bondholders would be repaid the full amount of the bonds, as well as $7 million in unpaid interest. Delta has brought in Merrill Lynch to assist with the new financing.
They are still working on the terms of the replacement financing, but will be repaying their debts as best as possible. They are currently in Chapter 11 protection from creditors, and are restructuring and cutting debts while doing so.
This is not the first time Delta has refinanced, last year they restructured lease contracts on 89 jets, trying to save hundreds of millions in rent payments. They are still looking into financing on another 100 smaller regional jets as well.
The court hearing on the proposed settlement and new plan is scheduled for July 26 in New York. ■
SIGN UP
