US Airways abandons bid for bankrupt Delta

0 Comments | AFP, January, 2007

NEW YORK (AFP) — US Airways said it was withdrawing its offer for Delta Air Lines in the face of resistance from the bankrupt carrier's management and a creditor committee's unwillingness to embrace the plan.

The latest offer, estimated to be worth some 10.2 billion dollars, was set to expire Thursday, but Delta management had been pressing for a plan to emerge from creditor protection on its own this year.

Atlanta, Georgia-based Delta had announced Tuesday commitments for 2.5 billion dollars in financing for the company's plan "to exit bankruptcy in spring 2007 as a strong, well-capitalized stand-alone carrier."

US Airways, which itself emerged from bankruptcy protection in September 2005 as part of a deal that merged the old company with low-cost carrier...