US Airways is taking it’s plan for a hostile takeover of Delta directly to Delta’s creditors:
(Creditor Committee Attorney Daniel) Golden said the creditors committee will go into the meeting with an open mind, even as Delta has said it opposes a merger and hopes to emerge from bankruptcy in the first half of next year as a standalone company. The head of Delta’s pilots union has expressed support for Delta’s plan. The union is a member of the creditors committee.
“We have great respect for Delta’s management,” Golden said. “We think they’ve done a very good job in Chapter 11. But at the end of the day we’re going to make a determination about what works best for the estate and the unsecured creditors.”
The meeting will be the first between all three sides since US Airways made its hostile bid for Delta public on Nov. 15. It will give US Airways an opportunity to pitch its offer directly to the creditors.
This is a dangerous situation for Delta as the decision is really out of their hands. The creditors want their money and if they find US Airways offer more to their liking than Delta’s they just might force the sale.
As I understand it, US Airways and Delta have many overlapping routes. I don’t see how this takeover could result in anything but massive layoffs. Normally companies purchase other companies to reach new markets or because of the synergy the new company would create. I just don’t see any of that here.