Delta Airlines 2005 Annual Report Download - page 75

Table of Contents
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
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 of
reorganization 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 of reorganization 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 of reorganization
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, or common stock). Generally, with respect to common stock interests, a plan of reorganization 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 plan of reorganization will be confirmed by the Bankruptcy Court, or that
any such plan will be implemented successfully.
Liabilities Subject to Compromise
The following table summarizes the components of liabilities subject to compromise included on our Consolidated Balance Sheet
as of December 31, 2005:
December 31,
(in millions) 2005
Pension, postretirement and other benefits $ 8,652
Debt and accrued interest 5,843
Aircraft lease related obligations 1,740
Accounts payable and other accrued liabilities 1,145
Total liabilities subject to compromise $ 17,380
Liabilities subject to compromise refers to pre-petition obligations which may be impacted by the Chapter 11 reorganization
process. These amounts represent our current estimate of known or potential pre-petition obligations to be resolved in connection with
our Chapter 11 proceedings.
Differences between liabilities we have estimated and the claims filed, or to be filed, will be investigated and resolved in
connection with the claims resolution process. We will continue to evaluate these liabilities throughout the Chapter 11 process and
adjust amounts as necessary. Such adjustments may be material. In light of the expected large number of creditors, the claims
resolution process may take considerable time to complete. Accordingly, the ultimate number and amount of allowed claims is not
presently known.
Reorganization Items, net
Reorganization items refers to revenues, expenses (including professional fees), realized gains and losses and provisions for losses
that are realized or incurred in the bankruptcy proceedings. The following table
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