Delta Airlines 2005 Annual Report Download - page 31

Table of Contents
Petition Date. Thus, for example, most creditor actions to obtain possession of property from the Debtors, or to create, perfect or
enforce any lien against the property of the Debtors, or to collect on monies owed or otherwise exercise rights or remedies with
respect to a pre-petition claim are enjoined unless and until the Bankruptcy Court lifts the automatic stay. Vendors are being paid for
goods furnished and services provided after the Petition Date in the ordinary course of business.
As required by the Bankruptcy Code, the United States Trustee for the Southern District of New York appointed an official
committee of unsecured creditors (the "Creditors Committee"). The Creditors Committee and its legal representatives have a right to
be heard on all matters that come before the Bankruptcy Court with respect to the Debtors. The Creditors Committee has been
generally supportive of the Debtors' positions on various matters; however, there can be no assurance that the Creditors Committee
will support the Debtors' positions on matters to be presented to the Bankruptcy Court in the future or on the Debtors' plan of
reorganization, once proposed. Disagreements between the Debtors and the Creditors Committee could protract the Chapter 11
proceedings, negatively impact the Debtors' ability to operate and delay the Debtors' emergence from the Chapter 11 proceedings.
Under Section 365 and other relevant sections of the Bankruptcy Code, we may assume, assume and assign, or reject certain executory
contracts and unexpired leases, including, without limitation, leases of real property, aircraft and aircraft engines, subject to the
approval of the Bankruptcy Court and certain other conditions. Any description of an executory contract or unexpired lease in this
Form 10-K, including where applicable our express termination rights or a quantification of our obligations, must be read in
conjunction with, and is qualified by, any overriding rejection rights we have under Section 365 of the Bankruptcy Code. See Note 1
of the Notes to the Consolidated Financial Statements.
In order to successfully exit Chapter 11, the Debtors will need to propose, and obtain confirmation by the Bankruptcy Court of, a
plan of reorganization that satisfies the requirements of the Bankruptcy Code. A plan of reorganization would, among other things,
resolve the Debtors' pre-petition obligations, set forth the revised capital structure of the newly reorganized entity and provide for
corporate governance subsequent to exit from bankruptcy.
The Debtors have the exclusive right for 120 days after the Petition Date to file a plan of reorganization and, if we do so,
60 additional days to obtain necessary acceptances of our plan. The Bankruptcy Court has extended these periods until July 11, 2006
and September 9, 2006, respectively, and these periods may be extended further by the Bankruptcy Court for cause. If the Debtors'
exclusivity period lapses, any party in interest may file a plan of reorganization for any of the Debtors. In addition to being voted on
by holders of impaired claims and equity interests, a plan of reorganization must satisfy certain requirements of the Bankruptcy Code
and must be approved, or confirmed, by the Bankruptcy Court in order to become effective. A plan of reorganization has been
accepted by holders of claims against and equity interests in the Debtors if (1) at least one-half in number and two-thirds in dollar
amount of claims actually voting in each impaired class of claims have voted to accept the plan and (2) at least two-thirds in amount of
equity interests actually voting in each impaired class of equity interests has voted to accept the plan.
Under certain circumstances set forth in Section 1129(b) of the Bankruptcy Code, the Bankruptcy Court may confirm a plan even
if such plan has not been accepted by all impaired classes of claims and equity interests. A class of claims or equity interests that does
not receive or retain any property under the plan on account of such claims or interests is deemed to have voted to reject the plan. The
precise requirements and evidentiary showing for confirming a plan notwithstanding its rejection by one or more impaired classes of
claims or equity interests depends upon a number of factors, including the status and seniority of the claims or equity interests in the
rejecting class (i.e., secured claims or unsecured claims, subordinated or senior claims, preferred or common stock). Generally, with
respect to common stock interests, a plan may be "crammed down" even if the shareowners receive no recovery if the proponent of the
plan demonstrates that (1) no class junior to the common stock is receiving or retaining property under the plan and (2) no class of
claims or interests senior to the common stock is being paid more than in full.
The timing of filing a plan of reorganization by us will depend on the timing and outcome of numerous other ongoing matters in
the Chapter 11 proceedings. Although we expect to file a plan of reorganization that provides for our emergence from bankruptcy as a
going concern, there can be no assurance at this time that a 26