Delta files order to stop payment on LAX facilities

bizjournals.com

Delta files order to stop payment on LAX facilities

Thursday October 13, 4:07 pm ET

Bankrupt Delta Air Lines Inc. is seeking a court order to allow it to stop payment on $88 million in bonds that financed its facilities at Los Angeles International Airport.

According to a report from Dow Jones, in the suit, filed Thursday in U.S. Bankruptcy Court in Manhattan, Atlanta-based Delta claims that because its facilities lease at the airport was really a loan, the carrier wasn't required to repay its debt obligation while operating under Chapter 11.

Delta cited the agreement not as a "true lease" but rather a "disguised" financing agreement, namely an unsecured loan. Under bankruptcy law, a company in Chapter 11 can stop making payments on unsecured loans.

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http://biz.yahoo.com/bizj/051013/1177587.html?.v=1

Published October 13, 2005 by the Atlanta Business Chronicle

to pay for it.

Ah the new corporate ways.

Depending on the type of bonds, the LA Taxpayers may or may not be responsible for repayment if the airline defaults.

Nationalize the airlines tomorrow and quit yapping. As a retired airline captain, I see the system as supremely fucked up. Cash is the answer. Mark my word.