Delta Airlines 2006 Annual Report Download - page 73

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
Under the NOL Order, any person or entity that (1) is a Substantial Equityholder (as defined below) and intends to purchase or sell or otherwise acquire
or dispose of Tax Ownership (as defined in the NOL Order) of any shares of our common stock or (2) may become a Substantial Equityholder as a result of
the purchase or other acquisition of Tax Ownership of shares of our common stock, must provide advance notice of the proposed transaction to the
Bankruptcy Court, to us and to the Creditors Committee. A “Substantial Equityholder” is any person or entity that has Tax Ownership of at least nine million
shares of our common stock. The proposed transaction may not be consummated unless written approval is received from us within the 15-day period
following our receipt of the notice. A transaction entered into in violation of these procedures will be void as a violation of the automatic stay under Section
362 of the Bankruptcy Code and may subject the participant to other sanctions. The NOL Order also requires that each Substantial Equityholder file with the
Bankruptcy Court and serve on us a notice identifying itself. Failure to comply with this requirement also may result in the imposition of sanctions.
Under the NOL Order, any person or entity that (1) is a Substantial Claimholder (as defined below) and intends to purchase or otherwise acquire Tax
Ownership of certain additional claims against us or (2) may become a Substantial Claimholder as a result of the purchase or other acquisition of Tax
Ownership of claims against us, must serve on the Creditors Committee a notice in which such claimholder consents to the procedures set forth in the NOL
Order. A “Substantial Claimholder” is any person or entity that has Tax Ownership of claims against us equal to or exceeding $400 million (an amount that
could be increased in the future). Under the NOL Order, Substantial Claimholders may be required to sell certain claims against us if the Bankruptcy Court so
orders in connection with our filing of the Plan. Other restrictions on trading in claims may also become applicable pursuant to the NOL Order in connection
with our filing of the Plan.
Liabilities Subject to Compromise
The following table summarizes the components of liabilities subject to compromise included on our Consolidated Balance Sheets as of December 31, 2006
and 2005:
(in millions) 2006 2005
Pension, postretirement and other benefits $ 10,329 $ 8,652
Debt and accrued interest 5,079 5,843
Aircraft lease related obligations 3,115 1,740
Accounts payable and other accrued liabilities 1,294 1,145
Total liabilities subject to compromise $ 19,817 $ 17,380
Liabilities subject to compromise refers to pre-petition obligations that may be impacted by the Chapter 11 reorganization process. These amounts
represent our current estimate of known or potential 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.
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