Delta CEO: US Air Buyout Is A Bad Deal

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AP

Delta Air Lines is forecasting a return to profitability next year, and again rejecting U.S. Airways' hostile overtures. The company's top executives have been hosting a webcast this morning--and CNBC’s Phi LeBeau has been monitoring details as they unfold.

LeBeau explained that what we’re starting to see today is the beginning of ‘trying to win over creditors’ – because that’s what’s needed for Delta to not be subject to a possible takeover from US Airways .

Delta executives are using strong language today; Delta CEO Gerald Grinstein said “Their proposal is a bad deal for Delta and its creditors.”

LeBeau explained the message from executives is clear - their proposal for reorganizing the company is the best move for creditors.

Here are the key points of the Delta reorganization plan:

-$9.4 – 12 Billion all equity payout / not cash

-63% - 80% of claim value

-And exit bankruptcy next year

A short while ago - US Air came out and said “We remain a dedicated bidder for Delta and believe our $8 billion is a superior offer.” – (because half of that is cash.)