Delta Retired Pilots To Get USD$800 Mln In Claims
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Delta Air Lines said on Monday its creditors agreed to allow the carrier to give retired pilots an additional USD$719 million in pre-petition claims to help them recoup lost pension benefits.
The announcement comes as Delta faces an unsolicited USD$8.7 billion takeover bid by US Airways.
In total, retired Delta pilots will now have a total of about USD$800 million in allowed claims, the airline said in a statement. The agreement with Delta's official committee of unsecured creditors is subject to bankruptcy court approval.
Delta, which has been operating under bankruptcy protection since September 2005, expects to end its pilots' defined benefit pension plan effective September 2, 2006.
The unsecured claim, which could take the form of equity or some other kind of security in a reorganized airline, would help the retirees recoup some of the loss, the airline said.
«Our retired pilots will recover through the claim process a significant portion of their unpaid non-qualified benefits,» Delta Chief Financial Officer Edward Bastian said in a statement.
(Reuters)
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