California Bankruptcy Lawyer Blog

Delta Air Lines can begin soliciting votes for its creditors to approve its bankruptcy reorganization plan. The airline carrier plans to emerge from bankruptcy in April. The disclosure plan, which was approved by the judge this week, will be sent to creditors.

According to attorneys for the Atlanta-based company, all formal, informal, unfiled, and filed objections had been resolved. Among the objections, were filings from Travelocity, several banks, the city of Los Angeles, and the county and city of Denver.

Delta first filed its disclosure statement and reorganization plan last December. Since then it has made two amendments. It has also managed a takeover bid by US Airways Group, which withdrew its bid for Delta last month after Delta’s creditors announced that it would support Delta’s plan to emerge from bankruptcy as a solo company.

Creditors can vote on the reorganization plan until April 9. The plan also includes Delta’s plans to give creditors new stock upon its exit from Chapter 11.

Continue reading "As Bankruptcy Judge Approves Disclosure Statement, Delta Moves Closer Toward Exiting Chapter 11 Bankruptcy Protection" »

NWA has filed its Chapter 11 bankruptcy reorganization plan. The airline company says that it plans to emerge from bankruptcy protection during the second quarter of 2007 as an independent company. NWA also says that it plans to eliminate unsecured debt by paying its unsecured creditors using common stock in the reorganized company. Preferred and common shareholders, however, will not receive anything.

A US Bankruptcy Court gave NWA an extension until February 15 to file its disclosure statement which will detail its reorganization plan for the public.

On Friday, NWA said that the plan included new, cost-saving lease agreements with airports and other facilities, as well as purchase agreements with engine and aircraft manufacturers.

Since filing for bankruptcy protection in 2005, NWA says that they succeeded in restructuring its fleet, removing $2.4 billion in yearly costs, significantly strengthening its balance sheet, and entering into new aircraft purchase agreements. New labor accords are also expected to save the airline carrier $1.4 billion each year.

Continue reading "Northwest Airlines Submits Bankruptcy Reorganization Plan" »

A federal bankruptcy judge has approved Adelphia Communication Corp.’s plan to pay its creditors and conclude one of the largest bankruptcy cases in U.S. history. Adelphia, formerly the fifth largest cable television company in the United States, had filed for bankruptcy protection from creditors in 2002.

Last July, Adelphia sold substantially all of its cable operations to Time Warner Inc. and Comcast Corp. for $17.6 billion in cash and shares in Time Warner’s cable unit. From this amount, $15 million of this will be used to pay creditors. After paying its debts, Adelphia will terminate its business. In July 2004, Timothy Rigas (the finance chief of Adelphia at the time) and his father John were convicted of securities fraud and conspiracy.

CBSnews.com offers the following timeline of key events that led to Adelphia to file for bankruptcy:

1952

John Rigas, operating a small theater in Coudersport, Pa., buys a cable franchise on a friend's advice. At the time only 60 small cable systems exist in the United States. Rigas and his brother, Gus, name their company Adelphia, Greek for "brothers."

1983

John Rigas buys out Gus Rigas' interest. Later, his sons — Michael, Timothy and James — become executive vice presidents, directors and principal stockholders.

1994

John Rigas becomes majority owner of the Buffalo Sabres hockey team with a $15 million investment.

Continue reading "Bankruptcy Exit Plan By Adelphia Is Approved By Federal Bankruptcy Judge " »