Delta Bankruptcy Judge OKs Debtor Financing
A Bankruptcy Court judge approved Delta Air Lines Inc.'s request to borrow $2.05 billion to help it operate after the company’s Chapter 11 filing this week.
Judge Prudence Carter Beatty said Delta could go ahead with plans to borrow $1.7 billion from General Electric Co.'s commercial finance unit and from Morgan Stanley in what’s known as debtor-in-possession financing. Delta is also borrowing $350 million in secured financing from American Express Co.
Delta, the third-largest U.S. carrier, has said it would keep up normal flight schedules and frequent-flier programs, and it sent messages to customers saying tickets would be honored.