Below are answers to some of the most frequently asked questions about our supplier partnerships during our restructuring. If your question or comment has not been addressed, you can e-mail us.
Yes. Under U.S. bankruptcy law, we are permitted to pay suppliers in full under and under normal credit terms for all goods and services provided to us during the bankruptcy proceedings.
We expect our suppliers to continue to honor our existing agreements. If you have a contract with Delta or our subsidiaries, the Chapter 11 laws require that you continue to perform services or provide products unless otherwise ordered by the Court.
Because (1) our suppliers are entitled to be paid under normal terms for all goods and services shipped to us during the reorganization proceedings; and (2) it is in our mutual best interest to preserve our business relationship.
Payments for "post-petition" goods and services will be made as usual and will be given priority status in the reorganization proceedings, providing additional protection to you. In addition, if you have a contract with Delta or our subsidiaries, the Chapter 11 laws require that you continue to perform services or provide products unless otherwise ordered by the Court.
Under U.S. Bankruptcy Law, payment for goods and services provided to a company before its Chapter 11 filing generally is frozen on the day of the filing. Any such unpaid amounts are treated as general unsecured claims in the company’s Chapter 11 proceedings and, with limited exceptions, are satisfied only as part of a plan of reorganization at the end of the Chapter 11 case. We don't yet know the exact value a general unsecured claim will have in our Chapter 11 case, however, under our proposed Plan of Reorganization, unsecured creditors generally will receive distributions of new Delta securities to settle their claims.
Goods received or services provided before the Chapter 11 filing are considered pre-petition. Goods received or services provided on or after the Chapter 11 filing are considered post-petition. If you are unsure, you should consult with your lawyer.
Yes. The Court will confirm the procedures and deadlines for filing claims and make that information available. Information about the claims process will also be available at deltadocket.com.
Delta recently obtained from a group of lenders significant debtor-in-possession financing commitments. This financing is necessary to help support our business during the Chapter 11 process, and would not have been made available to us unless the lenders believed our plan is viable and that we can execute it. We are hopeful of finalizing and receiving court approval of this financing shortly.
Debtor-in-possession, or DIP, financing is a new credit line provided to a company after it files for Chapter 11.
Our proposed Plan of Reorganization contemplates rolling Delta's $2.1 billion DIP financing into a new exit financing package. Delta has received multiple proposals with competitive terms and conditions for this exit financing.
Exit financing is access to capital provided to a company after it emerges from Chapter 11. In many cases a company's DIP is rolled into this new financing package.
Under U.S. law, a company is permitted to pay its suppliers in full and under normal credit terms for all goods and services provided to the company during its reorganization proceedings. In addition, we have requested court authorization to make current payment of the claims of most of our foreign suppliers. This means that, unlike suppliers based in the United States, upon court authorization, most foreign suppliers will be entitled to be paid under normal terms for all goods and services provided to Delta and its subsidiaries both before and during the Chapter 11 reorganization proceedings.
If your company is domiciled outside of the U.S. and does not have operations in the U.S., then it generally may be considered a non-U.S.-based supplier. However, in some cases the determination may be based on a variety of factors. If you are unsure, you should discuss this with your lawyer.
Additional information about Delta’s reorganization process is available at deltadocket.com. If you have remaining questions after reviewing this site, please call our Supplier Support Center at 866-686-8702 or 310-838-8020.