Chapter 11 FAQs
Below are answers to some of the most frequently asked questions about
our Chapter 11 filing. If your question or comment is not addressed, you
can
- What is Chapter 11?
- Does Chapter 11 mean Delta is going out of business?
- How long will Delta be in Chapter 11?
- Why did Delta file for Chapter 11 protection?
- How have Delta's subsidiaries been affected by Chapter 11 filing?
- What happens next in the Chapter 11 proceedings?
- What if I have additional questions?
What is Chapter 11?
The phrase refers to the section of U.S. law that allows a company to continue normal day-to-day operations while it develops a plan to reorganize.
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to topDoes Chapter 11 mean Delta is going out of business?
No. Under Chapter 11, we will continue to conduct normal business operations. That includes continuing to serve our customers and pay our employees. Indeed, our financial and operational position is strong, including an unrestricted cash position of $2.8 billion of unrestricted cash equivalents and short-term investments as of September 30, 2006.
How long will Delta be in Chapter 11?
On December 19, 2006, Delta filed a Plan of Reorganization and a related Disclosure Statement with the U.S. Bankruptcy Court. We are on course to emerge from the Chapter 11 process by mid-2007 as a strong, competitive, standalone airline with a truly global network.
Why did Delta file for Chapter 11 protection?
In 2005 we developed and began implementing a transformation plan focused on making Delta a simpler, more efficient, and cost-effective airline. The considerable benefits we were realizing under this plan, however, were being outpaced and masked by historically high aircraft fuel prices and other factors. Reorganizing under Chapter 11 has provided us with additional time and flexibility to expand our transformation plan and move Delta towards a more secure future.
How have Delta's subsidiaries been affected by Chapter 11 filing?
Our subsidiaries, including Comair, Delta AirElite®, Delta Connection® Academy, DAL Global Systems, and Delta Technology are continuing regular business operations during the reorganization.
What happens next in the Chapter 11 proceedings?
We plan to seek the Bankruptcy Court’s approval of the Disclosure Statement. Court approval of the adequacy of the Disclosure Statement will allow Delta to begin solicitation of votes for the Plan of Reorganization.
What if I have additional questions?
Visit Delta's Restructuring for the most up-to-date information or new developments. If you are a member of the media, you can contact Corporate Communications.