- The Washington Times - Wednesday, January 31, 2007

3:24 p.m.

ATLANTA (AP) — Delta’s official creditors committee threw its support behind the bankrupt airline’s stand-alone reorganization plan today, a decision that prompted US Airways to drop its hostile $9.8 billion bid to buy the Atlanta airline.

Delta Air Lines Inc.’s committee said it reached its decision after a lengthy review of both Delta’s and US Airways Group Inc.’s proposals.

The creditors committee is a key player in Delta’s Chapter 11 bankruptcy reorganization case. US Airways had asked for support from the committee and set a deadline of tomorrow.

Delta has said it projects it will be worth $9.4 billion to $12 billion when it emerges from bankruptcy by the middle of this year. Its management said repeatedly it wanted to remain on its own and not combine with US Airways.

The official creditors committee said it “has determined that it will support the stand-alone plan of reorganization as finally agreed upon between Delta and the Creditors Committee that will be filed later this week.”

“The Creditors Committee reached this determination after engaging in extensive discussions with representatives of Delta and US Airways over the last two months and upon consideration of the advice of the Creditors Committee’s legal, financial and industry advisors.”

The statement added, “In reaching this decision, the Creditors Committee considered a variety of factors, including, but not limited to, valuation of, the timing and the risks associated with, and the likelihood of a successful consummation of the US Airways proposal and the plan.”

The committee said it will work with Delta to confirm Delta’s plan.

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