Some Delta bondholders to back US Air bid

updated 8:27 a.m. ET Nov. 22, 2006

NEW YORK - Some bondholders of bankrupt airline Delta Air Lines Inc. have begun organizing an informal group to support US Airways Group Inc.'s $8.78 billion takeover offer, the Wall Street Journal reported on its Web site on Wednesday.

That could help the bid overcome initial opposition from the Atlanta carrier's management and skepticism from some of its larger creditors, the paper said.

In conference calls yesterday with Deutsche Bank AG and Lehman Brothers Holdings Inc., bondholders were urged to band together to pressure Delta to fully consider the bid from US Airways, the paper said.

The effort by both banks, which are Delta creditors, is aimed at creating a second group of creditors with some say in the airline's restructuring, it said.

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