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Delta to File for $12 Billion Reorg: Paper

Reuters
Monday, 18 Dec 2006 | 12:19 PM ET

Delta Air Lines , working to beat back an $8.4 billion merger bid from US Airways Group, is expected as soon as Tuesday to file a sweeping bankruptcy reorganization plan, the Wall Street Journal said on its Web site, citing people familiar with the matter.

The paper said the plan values Delta at $10 billion to $12 billion. The range, representing the Atlanta airline's estimated market value after emerging from bankruptcy, is down from the $12 billion to $14 billion range the airline was calculating a few weeks ago, the paper said.

US Airways in November proposed a deal to buy Delta, which is restructuring under the Chapter 11 bankruptcy protection process and still plans to emerge next year as a stand-alone airline.

Delta was not immediately available for comment.

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