Delta Air Creditors Seek Extension on Plan to Change Debt Terms

Aug. 24 (Bloomberg) -- Delta Air Lines Inc. creditors holding $1.3 billion of aircraft-backed bonds said they need more time and information before deciding whether to support a proposal that would change terms of the securities.

Delta, which has said it may file for bankruptcy protection, asked the creditors Aug. 18 to drop restrictions that bar the Atlanta-based airline from holding or buying the debt. The group is asking Delta to extend the Aug. 31 deadline.

The creditors hold leases and debt backed by about 169 planes representing a fifth of the company's fleet. The creditors want information including cash flows, revenue projections, debt, pensions, union relations and Delta's business plan, said Michael Reilly, a lawyer representing the creditors.

``We're certainly not volunteering concessions,'' said Reilly, who is with the firm Bingham McCutchen LLP. ``Unless we know what their restructuring plan is, we certainly can't react.''

Delta is considering the request, Reilly said from his office in Hartford, Connecticut. The airline said it may exchange the debt for new debt or other consideration.

The airline is in negotiations with its pilots union on a company request for $1 billion in annual pay and benefit concessions. Delta spokeswoman Peggy Estes declined to comment on the talks.

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