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.

MORE FROM AVIATION

Aviation Section Front

States scramble for slice of Boeing's business Qantas cancels orders for 15 Boeing 787s NYC service could change Southwest Airlines Dreamliner delays may be boon for Airbus Historic planes draw crowds at Paris Air Show Boeing gets first Paris Air Show order Asian, low-cost airlines boost Airbus Boeing’s military wing banks of foreign sales NYT: Dark clouds hover over air show Continental crash shows safety may have price Aviation Section Front   Add Aviation headlines to your news reader: