Below are answers to some of the most frequently asked questions about your investments during our restructuring. If your question or comment is not addressed, you can email us.
Trading in Delta's common stock was suspended by the New York Stock Exchange shortly after Delta's Chapter 11 filing in 2005. The stock was delisted shortly thereafter and now trades in the "over-the-counter" market on the "Pink Sheets" (www.pinksheets.com). The new trading symbol for Delta's common stock is OTC: DALRQ. Under the proposed plan of reorganization, current holders of Delta common stock would receive no distribution, and the securities would be canceled upon the effective date of the plan. Delta has indicated for some time that the company expected its common stock would not have any value under any plan of reorganization the company might propose, which is not uncommon in Chapter 11 proceedings.
Bankruptcy law establishes rules of priority under which claims against a debtor must be satisfied, and requires that creditors' pre-petition claims be addressed before those of shareholders. Under Delta's proposed Plan of Reorganization, we would satisfy creditors' pre-petition claims through the distribution of securities of the newly reorganized company. However, based on the expected value of Delta upon emergence, we are unable to satisfy the claims of all pre-petition creditors in full. Since the expected value of the Company will be less than creditors' claims, we will not be able to exchange "old stock" for "new stock."
If the proposed Plan of Reorganization becomes effective and Delta's common stock is cancelled, in general, an existing stockholder should be able to claim a loss on his or her investment, which may be used to help offset tax liabilities. However, you should consult your tax advisor or other tax resources to determine how this should be handled on your return.
The New York Stock Exchange has specific listing requirements that must be met for a stock to continue trading. In particular, the average closing price of Delta's common stock fell below the New York Stock Exchange's continued listing minimum share price standard of $1.00 over a consecutive 30-trading day period. Due to Delta's Chapter 11 filing, Delta did not oppose the suspension and delisting of these securities.
Delta's common stock is quoted on the "over-the-counter" market with the ticker symbol of DALRQ. At this time, stock quotations are available on the OTC Bulletin Board (OTCBB) and/or the "Pink Sheets." Please note that trading in the shares of companies in Chapter 11 is highly speculative. We believe that our currently outstanding common stock will have no value and will be canceled under any plan of reorganization we propose. You should contact your broker for further information.
The New York Stock Exchange delisted the 8 1/8% Notes due July 1, 2039 (New York Stock Exchange ticker symbol DNT). Delta did not oppose the delisting of these securities. Quotes are still available on the over-the-counter market and can be obtained on the OTC Bulletin Board and/or the Pink Sheets under the ticker symbol DNTNQ.
We cannot predict what the near- or long-term value of Delta's bonds may be.
Interest payments on Delta debt securities generally have been suspended.
We began submitting monthly operating reports to the Bankruptcy Court in November 2005. These reports are available at Other Financial Information. We have continued to file quarterly and annual reports with the SEC. All of these reports are also available here at delta.com. We are not holding quarterly conference calls during the reorganization proceedings.
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You should consult with your own professional investment advisor to assess your personal investment situation. Please note that trading in the shares of companies in Chapter 11 is highly speculative. Under the proposed Plan of Reorganization, current holders of Delta common stock would receive no distribution, and the securities would be canceled upon the effective date of the Plan.
Key court filings and other information related to Delta's bankruptcy proceedings are available at deltadocket.com.