ATLANTA, April 16, 2007 (PRIME NEWSWIRE) -- Delta Air Lines (Other OTC:DALRQ) today announced that unofficial results of the vote on the company's Plan of Reorganization show overwhelming support of creditors for the company's plan. More than 95 percent of ballots cast and claims value voting were in favor of the plan. Creditors also voted in similar numbers in favor of the Plan of Reorganization for Delta's wholly owned regional airline subsidiary Comair. The final voting results for both plans will be filed later this week with the U.S. Bankruptcy Court.
"We appreciate our creditors' strong vote of confidence in our plan, which we believe both maximizes their recovery and builds a foundation for Delta's long-term success," said Edward H. Bastian, Delta's executive vice president and chief financial officer. "We are looking forward to a strong future as we emerge from bankruptcy later this month, continuing the momentum we have built through our restructuring and returning Delta to its rightful place as an industry leader."
The next milestone in Delta's bankruptcy proceeding will be April 25 when the court will be asked to confirm Delta's Plan of Reorganization, allowing the airline to exit Chapter 11. On Feb. 7, Delta received court approval of its Disclosure Statement and the authorization to solicit votes from creditors on its plan of reorganization. Voting on the plan ended April 9.
Important Financial Disclosure
Delta's Plan of Reorganization provides for certain creditors to receive distributions of newly issued common stock upon the Company's emergence from bankruptcy. Holders of Delta's existing common stock (the "old equity") will not receive any distributions under Delta's proposed Plan of Reorganization. The old equity, which was delisted from the NYSE on October 13, 2005, is currently trading over the counter under the symbol DALRQ. The old equity will be cancelled upon the effectiveness of the proposed Plan of Reorganization, which the company believes will be shortly after the Bankruptcy Court's confirmation hearing scheduled on April 25, 2007. Accordingly, we urge that caution be exercised with respect to existing and future investments in the old equity and any of Delta's existing liabilities and other securities.
About Delta
Delta Air Lines (Other OTC:DALRQ) offers customers service to more destinations than any global airline with Delta and Delta Connection carrier service to 307 destinations in 52 countries. With more than 60 new international routes added in the last year, Delta is America's fastest growing international airline and is a leader across the Atlantic with flights to 31 trans-Atlantic destinations. To Latin America and the Caribbean, Delta offers more than 600 weekly flights to 58 destinations. Delta's marketing alliances also allow customers to earn and redeem SkyMiles on nearly 15,000 flights offered by SkyTeam and other partners. Delta is a founding member of SkyTeam, a global airline alliance that provides customers with extensive worldwide destinations, flights and services. Including its SkyTeam and worldwide codeshare partners, Delta offers flights to 456 worldwide destinations in 100 countries. Customers can check in for flights, print boarding passes and check flight status at delta.com.
The Delta Air Lines, Inc. logo is available at http://www.primezone.com/newsroom/prs/?pkgid=1825
Statements in this news release that are not historical facts, including statements regarding our estimates, expectations, beliefs, intentions, projections or strategies for the future, may be "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the estimates, expectations, beliefs, intentions, projections and strategies reflected in or suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, our ability to prosecute, confirm and consummate our proposed plan of reorganization with respect to the Chapter 11 proceedings; the actions and decisions of our creditors and other third parties with interests in our Chapter 11 proceedings; our ability to obtain court approval with respect to motions in the Chapter 11 proceedings prosecuted from time to time; our ability to obtain and maintain normal terms with vendors and service providers; our ability to maintain contracts that are critical to our operations; risks associated with third parties seeking and obtaining court approval to terminate or shorten the exclusivity period for us to propose and confirm one or more plans of reorganization, to appoint a Chapter 11 trustee or to convert the cases to Chapter 7 cases; the cost of aircraft fuel; the impact that our indebtedness will have on our financial and operating activities and our ability to incur additional debt; the restrictions that financial covenants in our financing agreements will have on our financial and business operations; labor issues; interruptions or disruptions in service at one of our hub airports; our increasing dependence on technology in our operations; our ability to retain management and key employees; restructurings by competitors; the effects of terrorist attacks; and competitive conditions in the airline industry.
Additional information concerning risks and uncertainties that could cause differences between actual results and forward-looking statements is contained in Delta's Securities and Exchange Commission filings, including its Form 10-K for the fiscal year ended December 31, 2006, filed on March 2, 2007. Current holders of Delta's equity will not receive any distributions under Delta's proposed Plan of Reorganization. These equity interests would be cancelled upon the effectiveness of the proposed Plan of Reorganization. Accordingly, we urge that caution be exercised with respect to investments in Delta's existing equity securities and any of Delta's liabilities and other securities. Investors and other interested parties can obtain information about Delta's Chapter 11 filing on the Internet at delta.com/restructure. Court filings, claims information and our proposed Plan of Reorganization are available at deltadocket.com. Caution should be taken not to place undue reliance on Delta's forward-looking statements, which represent Delta's views only as of April 16, 2007, and which Delta has no current intention to update.