Republic, Delta accords face objections in bankruptcy
Delta’s offer of US$75m to fund Republic Airway’s chapter 11 case has run into trouble with shareholders and the federal govt, which complain the financing terms offer Delta extraordinary, and possibly illegal, protections. In an objection filed Thursday, a US attorney said the financing terms would “impermissibly protect Delta,” may be “unlawful” and should therefore be denied the bankruptcy court’s approval. Republic shareholders also urged the court to deny the financing, which in conjunction with a related settlement between Delta and Republic they say would give Delta “enormous power” in Republic’s chapter 11 case. Through code-share agreements, Republic operates flights for Delta and other large carriers. “Granting that power to Delta should not be considered lightly,” the shareholders said in court papers filed Thursday. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2016-04-19/sky/republic-delta-accords-face-objections-in-bankruptcy
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Republic, Delta accords face objections in bankruptcy
Delta’s offer of US$75m to fund Republic Airway’s chapter 11 case has run into trouble with shareholders and the federal govt, which complain the financing terms offer Delta extraordinary, and possibly illegal, protections. In an objection filed Thursday, a US attorney said the financing terms would “impermissibly protect Delta,” may be “unlawful” and should therefore be denied the bankruptcy court’s approval. Republic shareholders also urged the court to deny the financing, which in conjunction with a related settlement between Delta and Republic they say would give Delta “enormous power” in Republic’s chapter 11 case. Through code-share agreements, Republic operates flights for Delta and other large carriers. “Granting that power to Delta should not be considered lightly,” the shareholders said in court papers filed Thursday. <br/>
