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SAN FRANCISCO (MarketWatch) -- Delta Air Lines is planning to submit its bankruptcy reorganization plan any day, the company said Monday, a step that's expected to narrow the chances U.S. Airways will succeed in its unsolicited bid for Delta.
Filing a reorganization plan moves the company further from the sights of Tempe, Arizona-based U.S. Airways, says Jim Corridore, an equity analyst for Standard & Poor's.
"The fact that Delta is going forward with the reorganization, as it's been reported, will make it more difficult for there to be a merger," said Corridore.
Since U.S. Airways announced its proposal, management led by chief executive Doug Parker has been touting the benefits of the offer to Delta and its creditors.
But Delta has turned a cold shoulder to those overtures, saying it still aims to emerge from bankruptcy as a stand-alone company by mid-2007.
Meanwhile, Delta has overcome at least one hurdle to emerging from bankruptcy. Earlier this month, the airline reached a tentative agreement with the Pension Benefit Guarantee Corp. that will transfer Delta's obligation to fund its pilots' pension plans to the U.S. agency
A U.S. Airways spokesperson didn't return a call.
Filing a reorganization plan moves the company further from the sights of Tempe, Arizona-based U.S. Airways, says Jim Corridore, an equity analyst for Standard & Poor's.
"The fact that Delta is going forward with the reorganization, as it's been reported, will make it more difficult for there to be a merger," said Corridore.
Since U.S. Airways announced its proposal, management led by chief executive Doug Parker has been touting the benefits of the offer to Delta and its creditors.
But Delta has turned a cold shoulder to those overtures, saying it still aims to emerge from bankruptcy as a stand-alone company by mid-2007.
Meanwhile, Delta has overcome at least one hurdle to emerging from bankruptcy. Earlier this month, the airline reached a tentative agreement with the Pension Benefit Guarantee Corp. that will transfer Delta's obligation to fund its pilots' pension plans to the U.S. agency
A U.S. Airways spokesperson didn't return a call.
