Delta Seeks to Void Employee Stock Options

Delta Air Lines Inc., which is operating under bankruptcy protection, asked a judge Monday to allow the nation’s third-largest carrier to void options on about 93 million shares held by 70,000 current and former employees and directors.

The Atlanta-based company said the options, if exercised, would provide little to no real value, making the $305,000 a year it costs the airline to maintain, account for and administer the benefit an unnecessary burden on Delta.

The company’s motion says the request has the support of the creditor committee in its bankruptcy case and the Air Line Pilots Assn., the union that represents holders of about one-third of the options Delta is seeking to void.

A hearing on the request is scheduled April 3 in U.S. Bankruptcy Court in New York.

The options have exercise prices from $2.97 to $62.63 a share. Delta’s stock has been trading in recent days at about 40 cents a share in over-the-counter trading.

“The rejection of the Delta stock options will have no practical economic effect on the option holders,” the airline said.

Shares of a company in bankruptcy generally become worthless once the company emerges from bankruptcy.