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- Aug 30, 2002
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Delta Air Lines won't seek white knight
LONDON (Reuters) - Bankrupt Delta Air Lines Inc. (DALRQ.PK) has "no plans" to seek a white knight and will instead produce a restructuring plan to counter a takeover bid by US Airways Group Inc. (LCC.N), the carrier's chief financial officer told the Financial Times.
"We'll come out with a strong plan (in mid-December) that our creditors will view with much more confidence and certainty" than US Airways, Ed Bastian said in an interview published in the FT's Monday edition.
Bastian declined to flesh out details of the proposal but said there were "no plans" to woo a white knight or boost its balance sheet with capital from a stronger rival such as Air France KLM (AIRF.PA), according to the British newspaper.
He reiterated a report in The Wall Street Journal on Friday that the airline was focused on talks with key creditors.
"We are in deep discussions with a number of lenders who are anxious to finance our plan," Bastian told the FT.
US Airways proposed an $8 billion takeover of Delta on last Wednesday after an attempt at merger talks failed. US Airways, the No. 7 U.S. airline with over 35,000 employees, believes the combination will generate at least $1.65 billion in annual savings.
But Delta, the No. 3 U.S. airline with over 47,000 workers, has said it intends to emerge from bankruptcy as a stand-alone carrier.
LONDON (Reuters) - Bankrupt Delta Air Lines Inc. (DALRQ.PK) has "no plans" to seek a white knight and will instead produce a restructuring plan to counter a takeover bid by US Airways Group Inc. (LCC.N), the carrier's chief financial officer told the Financial Times.
"We'll come out with a strong plan (in mid-December) that our creditors will view with much more confidence and certainty" than US Airways, Ed Bastian said in an interview published in the FT's Monday edition.
Bastian declined to flesh out details of the proposal but said there were "no plans" to woo a white knight or boost its balance sheet with capital from a stronger rival such as Air France KLM (AIRF.PA), according to the British newspaper.
He reiterated a report in The Wall Street Journal on Friday that the airline was focused on talks with key creditors.
"We are in deep discussions with a number of lenders who are anxious to finance our plan," Bastian told the FT.
US Airways proposed an $8 billion takeover of Delta on last Wednesday after an attempt at merger talks failed. US Airways, the No. 7 U.S. airline with over 35,000 employees, believes the combination will generate at least $1.65 billion in annual savings.
But Delta, the No. 3 U.S. airline with over 47,000 workers, has said it intends to emerge from bankruptcy as a stand-alone carrier.
