US Airways withdraws bid for Delta due to failure to secure creditors' backing

Washington DC
Source:
This story is sourced from Flight Daily News
Subscribe today »

US Airways has withdrawn its contentious bid to takeover Delta Air Lines.

The withdrawal comes one day after US Airways chairman and chief executive Doug Parker said he would not pursue the takeover if Delta’s major creditors did not support the latest $10 billion offer.

In a statement today US Airways notes: “The airline was informed earlier today that the official unsecured creditors’ committee would not meet its demands by the airline’s established deadline of February 1.”

Adds Parker: “We are disappointed that the committee, which has been chosen to act on behalf of all Delta creditors, is ignoring its fiduciary obligation to those creditors. Our proposal would have provided substantially more value to Delta’s unsecured creditors than the Delta stand-alone plan.

“We would have created a better and more financially stable airline that offered more choice to consumers and increased job security to its employees. Our merger would have been able to be consummated in a reasonable time-frame and we would have been able to obtain all requisite regulatory approvals.”

Delta was not immediately available for comment.