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Latest Business News

Judge Orders Delta to Pay $2M Monthly

Wednesday, February 08, 2006 10:38:10 PM
By ALEKSANDRS ROZENS

NEW YORK (AP) - A bankruptcy judge on Wednesday tentatively ordered Delta Air Lines Inc. to pay a bondholders' trustee $2 million a month as a cushion against any drop in the value of jets the carrier pledged as collateral.

Bankruptcy Judge Adlai Hardin also provided guidelines to how the carrier should maintain and adequately protect the value of 32 planes Delta pledged in the 2004 bond deal. He is expected to formally rule on the guidelines in coming days.

The trustee, Wells Fargo Bank N.A., had asked the airline to ensure proper maintenance of the jets. Wednesday was the second day of hearings on this issue.


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