Los Angeles objects to Delta bankruptcy plan

The city of Los Angeles said in a Bankruptcy Court filing Thursday that Delta Air Lines Inc.’s reorganization plan should not be approved because of undue authority it would give the company to reject certain leases.

The city made the comments in an objection to the disclosure statement to Delta’s reorganization plan. Denver, Palm Beach County, Fla., and the operator of a Puerto Rico airport also objected, as did some banks and an ad hoc committee of creditors.

The city, which owns Los Angeles International Airport and Ontario International Airport, said in its filing that Delta’s disclosure statement failed to describe the potential effect that termination of its Terminal 5 lease at LAX would have on the company’s operations and financial performance.

The filing said that the city was seeking, subject to court approval, to terminate the lease.