A group of Delta Air Lines creditors says it cannot sign off on a plan to restructure the airline's debt in an effort to avoid bankruptcy court.
The Committee of Senior Secured Aircraft Creditors said that Delta has declined to provide information it needs on the Atlanta-based airline's business plan, financial condition and restructuring plan.
The group of 34 financial institutions has holdings of more than $1.4 billion of Delta debt. It asked for the additional information on Tuesday. At the same time, the committee said it would be unable to meet a Delta deadline of Aug. 31 to agree to the debt restructuring plan.
In a news release, Delta says it is providing additional information, in the form of a Q&A, to help holders of debt securities to better understand its efforts. Delta spokeswoman Patti Futrell said the airline would have no comment beyond that news release and another it issued last week announcing the debt proposal.
Michael Reilly, a lawyer representing the creditors committee, said the Q&A is “totally inadequate to address Delta's restructuring plan.”
The proposal Delta outlined Aug. 18 involves equity certificates issued by investor groups that lease aircraft to the airline to assist in financing the planes' cost. Delta wants the holders of those certificates to remove restrictions that prevent the airline from buying or holding the securities.