================================================================= DELTA AIR LINES BANKRUPTCY NEWS Issue Number 1 ----------------------------------------------------------------- Copyright 2005 (ISSN XXXX-XXXX) September 15, 2005 ----------------------------------------------------------------- Bankruptcy Creditors' Service, Inc. 215-945-7000 FAX 215-945-7001 ----------------------------------------------------------------- DELTA AIR LINES BANKRUPTCY NEWS is published by Bankruptcy Creditors' Service, Inc., 572 Fernwood Lane, Fairless Hills, Pennsylvania 19030, on an ad hoc basis (generally every 10 to 20 days) as significant activity occurs in the Debtors' cases. New issues are prepared by Carlo B. Fernandez, Christopher G. Patalinghug, Frauline S. Abangan and Peter A. Chapman, Editors. Subscription rate is US$45 per issue. Any re-mailing of DELTA AIR LINES BANKRUPTCY NEWS is prohibited. ================================================================= IN THIS ISSUE ------------- [00000] HOW TO SUBSCRIBE TO DELTA AIR LINES BANKRUPTCY NEWS [00001] BACKGROUND & DESCRIPTION OF DELTA AIR LINES [00002] DELTA AIR LINES' BALANCE SHEET AT JUNE 30, 2005 [00003] COMPANY'S PRESS RELEASE ANNOUNCING CHAPTER 11 FILING [00004] DELTA DEBTORS' CHAPTER 11 DATABASE [00005] LIST OF SONG, LLC'S 20-LARGEST UNSECURED CREDITORS [00006] LIST OF CROWN ROOMS' 20-LARGEST UNSECURED CREDITORS [00007] LIST OF DELTA AIR LINES' 20-LARGEST UNSECURED CREDITORS [00008] LIST OF COMAIR, INC.'S 20-LARGEST UNSECURED CREDITORS [00009] LIST OF DELTA CONNECTION'S 20-LARGEST UNSECURED CREDITORS [00010] LIST OF DAL GLOBAL'S 20-LARGEST UNSECURED CREDITORS [00011] LIST OF DELTA TECHNOLOGY'S 20-LARGEST UNSECURED CREDITORS [00012] LIST OF COMAIR HOLDINGS' 20-LARGEST UNSECURED CREDITORS [00013] LIST OF DELTA CORPORATE'S 20-LARGEST UNSECURED CREDITORS [00014] LIST OF COMAIR SERVICES' 20-LARGEST UNSECURED CREDITORS [00015] LIST OF DELTA VENTURES' 20-LARGEST UNSECURED CREDITORS [00016] LIST OF DAL MOSCOW'S 20-LARGEST UNSECURED CREDITORS [00017] LIST OF DELTA LOYALTY'S 20-LARGEST UNSECURED CREDITORS [00018] LIST OF DAL AIRCRAFT'S 20-LARGEST UNSECURED CREDITORS [00019] LIST OF DELTA AIRELETE'S 20-LARGEST UNSECURED CREDITORS [00020] LIST OF EPSILON TRADING'S 20-LARGEST UNSECURED CREDITORS [00021] LIST OF DELTA BENEFITS' 20-LARGEST UNSECURED CREDITORS [00022] LIST OF ASA HOLDINGS' 20-LARGEST UNSECURED CREDITORS [00023] LIST OF KAPPA CAPITAL'S 20-LARGEST UNSECURED CREDITORS [00024] LIST OF DEBTORS' 5 LARGEST SECURED CREDITORS [00025] DEBTORS' MOTION FOR JOINT ADMINISTRATION OF CASES [00026] DELTA RECEIVES COURT APPROVAL OF INITIAL INTERIM ORDERS [00027] FITCH DOWNGRADES DELTA AIR LINES' RATING TO 'D' [00028] CIT QUANTIFIES EXPOSURE TO DELTA AIR LINES [00029] OVERHILL FARMS SAYS IT HAS REDUCED ITS EXPOSURE TO DELTA [00030] GOVERNOR SAYS GEORGIA WILL CONTINUE TO SUPPORT DELTA KEY DATE CALENDAR ----------------- 09/14/05 DELTA's Voluntary Petition Date 09/29/05 Deadline for DELTA's Schedules of Assets & Liabilities 09/29/05 Deadline for DELTA's Statement of Financial Affairs 09/29/05 Deadline for DELTA's Lists of Leases and Contracts 10/04/05 Deadline for DELTA to provide Utilities Deposits 11/13/05 Deadline to make Sec. 1110 aircraft lease decisions 11/13/05 DELTA's Deadline to make Lease Disposition Decisions 12/13/05 DELTA's Deadline to remove actions under FRBP 9027 01/12/06 Expiration of DELTA's Exclusive Plan Proposal Period 03/13/06 Expiration of DELTA's Exclusive Solicitation Period 09/14/07 Deadline for DELTA to Commence Avoidance Actions Organizational Meeting to form DELTA Committees First Meeting of DELTA Creditors under 11 USC Sec. 341 Bar Date for filing Proofs of Claim against DELTA ----------------------------------------------------------------- [00000] HOW TO SUBSCRIBE TO DELTA AIR LINES BANKRUPTCY NEWS ----------------------------------------------------------------- DELTA AIR LINES BANKRUPTCY NEWS is distributed to paying subscribers by electronic mail. 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Name: ---------------------------------------------- Firm: ---------------------------------------------- Address: ---------------------------------------------- ---------------------------------------------- Phone: ---------------------------------------------- Fax: ---------------------------------------------- E-Mail: ---------------------------------------------- (Distribution to multiple professionals at the same firm is provided at no additional cost.) DELTA AIR LINES BANKRUPTCY NEWS is distributed to paying subscribers by electronic mail. New issues are published on an ad hoc basis as significant activity occurs (generally every 10 to 20 days) in the Debtors' chapter 11 proceedings. The subscription rate is US$45 per issue. Newsletters are delivered via e-mail; invoices, transmitted following publication of each newsletter issue, arrive by fax. Re-mailing of DELTA AIR LINES BANKRUPTCY NEWS is prohibited. Distribution to multiple individuals at the same firm is provided at no additional charge; folks outside of your firm should set-up and pay for their own subscriptions. Subscriptions may be canceled at any time without further obligation. ----------------------------------------------------------------- [00001] BACKGROUND & DESCRIPTION OF DELTA AIR LINES ----------------------------------------------------------------- DELTA AIR LINES, INC. 1030 Delta Boulevard Atlanta, Georgia 30320-6001 Telephone (404) 715-2600 Fax (404) 715-5042 http://www.delta.com/ Delta Air Lines is the world's second largest passenger airline. According to Edward H. Bastian, Delta's executive vice president for finance & chief financial officer, 76 years ago, Delta was just a small crop dusting company in Monroe, Louisiana. It has since grown to become a global leader in commercial aviation, Mr. Bastian says. Mr. Bastian relates that Delta strengthened its position by merging with Western Air Lines in 1987 to become the United States' fourth-largest airline, and the fifth-largest airline in the world. To increase its global presence, Delta formed an alliance with Swissair and Singapore Airlines, Ltd., in 1989. In 1991, Delta purchased Pan American World Airways transatlantic routes and its East Coast Shuttle. Stats & Facts -- September 2005: Headquarters: Atlanta, Georgia CEO: Gerald Grinstein 2004 Revenue: $15 billion Employees: 52,000+ Delta Daily Flights: 1,873 Comair Daily Flights: 1,142 Daily Flights + Partners: 7,587 Delta Destinations: 502 cities in 88 countries Passengers Enplaned in 2004: 109,999,636 Delta Connection Carriers: Atlantic Southeast Airlines Chautauqua Airlines Comair Freedom Airlines Shuttle America SkyWest SkyTeam Alliance: AeroMexico Air France Alitalia Continental Airlines CSA Czech Airlines KLM Royal Dutch Airlines Korean Air Northwest Airlines Codeshare Partners: Air Jamaica Avianca China Airlines China Southern El Al Israel Airlines Royal Air Maroc South African Airways Major U.S. Hubs: Atlanta Cincinnati Salt Lake City Major International Gateways: Atlanta to Europe and Latin America Cincinnati to Europe and Latin America Los Angeles to the Pacific New York JFK to Europe and beyond Worst Financial Crisis Despite its extensive market position and worldwide presence, Delta says it now faces the worst financial crisis in its history. Mr. Bastian discloses that from January 1, 2001, through June 30, 2005, the company's net losses totaled approximately $10 billion. Delta retained Daniel M. Kasper, a Managing Director of LECG, Corp. and head of the firm's transportation practice, to evaluate -- based on his knowledge, experience and understanding of the airline industry, airline economics, and competition -- the current state of the U.S. airline industry generally, as well as Delta's current and prospective competitive position in the industry. Mr. Kasper observed that despite the efforts of Delta's management and its employees, the brutally competitive economic environment that has engulfed the airline industry over the past four years has wreaked havoc on Delta's finances. Mr. Kasper identified five key causal factors underlying the present crisis: -- The rapid expansion of low cost carrier competition; -- The rapid, prolonged and unforeseen rise in jet fuel prices over the past two years that shows few signs of abating; -- A dramatic shift in travel purchase patterns away from the premium fares and service offered by Delta and other legacy airlines and toward the lower-priced services offered by low cost carriers; -- Technological changes that have made it easier and less costly for travelers to find and purchase the lowest available airfares; and -- The effects of the terrorist attacks of September 11, 2001, on airline demand, revenues and costs. "In the face of growing competition from rapidly expanding low cost carriers and persistently high fuel prices, Delta must substantially reduce its costs and increase its unit revenues. Unless Delta can reduce its costs substantially and quickly, the Company's financial position will continue to deteriorate," Mr. Kasper says. "But if Delta can reduce its costs and increase its unit revenues, the Company would be well positioned to emerge as a strong and economically viable competitor. It has a portfolio of valuable assets, including an extensive route network, a comprehensive set of international alliances, strong hubs, highly skilled and committed employees, a large and loyal customer base and a viable competitive strategy." Efforts to Avoid Bankruptcy Mr. Bastian relates that over the past several years, Delta has been trying to reduce its costs and improve competitive performance through a series of strategic initiatives. The Company has tried, among others: (1) implementing an early phase-out of 19 aircraft from scheduled service to adjust fleet capacity to demand and improve fleet efficiency; (2) initiating a hiring freeze; (3) reallocating aircraft to routes with greater profit potential; and (4) lowering advertising, consulting and contractor costs. During 2002, Delta cut costs by $1 billion. "Despite these actions, Delta recorded a substantial loss in 2002," Mr. Bastian says. Undeterred, Delta developed a Profit Improvement Initiative, a program designed to assist the airline in both lowering its costs and increasing its revenues. PII included 17 different initiatives designed to improve profitability throughout Delta's organization. In 2003, Delta achieved $1.2 billion in benefits from PII initiatives. According to Mr. Bastian, the most noteworthy of these savings came from: (1) transforming the passenger check-in process to utilize more self-service options like automated ticketing kiosks, DeltaDirect phones, and check-in via Delta's Internet Web site; (2) utilizing new crew scheduling technology for flight attendants; (3) restructuring operations at Delta's DFW and Salt Lake City hubs; (4) changing the pension, health care, and other benefits provided to Delta s non-pilot employees; and (5) entering into a marketing alliance with Continental and Northwest, which includes mutual code sharing and reciprocal frequent flyer and airport lounge access arrangements. But it wasn't enough. Delta continued to lose billions of dollars. According to Mr. Bastian, Delta needed to renegotiate its collective bargaining agreement with its pilots, represented by the Air Line Pilots Association, International. Mr. Bastian recounts that Delta was narrowly able to avert bankruptcy because, among other things, in late October 2004, its pilots' union agreed to a new contract to provide Delta with $1 billion in long-term annual cost savings. Out-of-Court Transformation Plan The pilots' pay cut was one of the cornerstones in Delta's out- of-court Transformation Plan. The Transformation Plan called for Delta to achieve approximately $5 billion in annual benefits through cost reductions and revenue improvements by the end of 2006. By the end of 2004, Delta had already achieved approximately $2.3 billion of the $5 billion in targeted benefits under the previously implemented PII. In addition, Mr. Bastian relates, Delta took significant steps to increase its liquidity. In November 2004, Delta entered into new arrangements with GE Commercial Finance and American Express Travel Related Services Company, Inc., that provided a critical $1.1 billion in incremental liquidity. Delta recently sold its wholly owned subsidiary, Atlantic Southeast Airlines to SkyWest Airlines for $425 million and renegotiated the return of $50 million in advance deposits from its aircraft supplier. However, Mr. Bastian notes, Delta's high cost of fuel, its heavy debt burden, its pension obligations, and the weakened industry revenue environment have outpaced its Transformation Plan achievements. As of June 30, 2005, Delta had achieved approximately 85% of these benefits and was ahead of schedule to meet its goal of $5 billion in financial improvements by the end of 2006. "Despite doing everything it could to preserve its liquidity, Delta is now left with no alternative but to seek the protections and flexibilities afforded by the Bankruptcy Code," Mr. Bastian says. In-Court Business Plan Mr. Bastian relates that Delta is in the process of finalizing its In-Court Business Plan. Pursuant to the Business Plan, Delta must generate significant free cash flow to enable debt reduction and capital investment, create positive returns for shareholders, and ensure a stable and rewarding career opportunity for employees. To achieve these goals, Mr. Bastian says, Delta must provide outstanding customer service, pursue profitable growth, and repair its balance sheet. A. Delta Will Increase Its Revenues Wherever Feasible Delta has lost pricing power in a majority of large domestic markets and will soon face competition in many of its small connecting routes. To improve its revenues, Delta anticipates that it will be able to grow its nominal yields by approximately 3.2 percent annually, supported by capacity reductions and network initiatives. Delta also plans to increase its load factor from 76.6 percent in 2005 to 77.6 percent by 2007 by better matching customer demand with flight offerings. Delta plans to use chapter 11 to reconfigure its fleet and network footprint in a manner that will enhance its revenues: (1) Delta will seek to simplify and streamline its fleet by removing four aircraft types by the end of 2006, so that only seven mainline aircraft types will remain. (2) Delta plans to deploy smaller aircraft on many of its routes so that it utilizes the proper-sized aircraft for the route it is flying. (3) Delta will continue to right-size its hub operations. (4) Delta plans to increase its capacity on international routes with greater profit potential. As part of their ongoing efforts to reduce costs and maximize fleet flexibility, the Debtors have identified certain leases for aircraft, engines, propellers, and other related equipment and certain subleases that no longer fit into the Debtors business plan and, are no longer profitable to the Debtors. Rejection of these leases and subleases is in the best interests of the Debtors estates and creditors and constitutes a proper exercise of the Debtors' sound business judgment. B. Delta Has Identified Requisite and Attainable Cost Savings By 2006, Delta expects to have achieved $5 billion in annual benefits from Transformation Plan initiatives. Delta is also in the process of conducting another focused review of its network operations and cost structure and expects to generate approximately $1 billion in additional annual benefits by 2008, with 60 percent of the goal to be achieved by the end of 2006. The expansion of the Transformation Plan will cut costs by reducing less-efficient fleet types, adjusting the network footprints to reflect the current competitive environment, outsourcing select functions, and reducing corporate overhead. A number of these initiatives have already been launched. On September 7th, Delta announced that effective December 1st, it will right-size its operations at Cincinnati-Northern Kentucky International Airport, its second-largest hub, to better match service to local passenger demand and to optimize the balance between local and connecting traffic. In addition, Delta also announced that its fall and winter schedules will have new or expanded service to 41 international destinations throughout its global network. These changes come as Delta also announced an increase in point-to-point flying and the addition of new Delta Connection carriers and routes. Delta will also need to reduce further its labor and retiree costs in order to compete. Although the Debtors have not engaged in any substantive discussions with any ad hoc committees in 2005, Mr. Bastian says, they have been contacted by counsel purporting to represent ad hoc committees of various creditor groups. These committees are: (1) a group of creditors, including trade creditors and other non-bondholders, represented by John Wm. Butler, Jr., Esq., of Skadden, Arps, Slate, Meagher & Flom LLP; (2) a group of holders of unsecured bonds, represented by Dennis Dunne, Esq., of Milbank, Tweed, Hadley & McCloy LLP; and (3) a group of secured aircraft lenders represented by Peter Schellie, Esq., of Bingham McCutchen LLP. According to Mr. Bastian, the Debtors, through their counsel, provided certain confidential filing-related information to counsel for these committees on the day of the Debtors' chapter 11 filings. A full-text copy of Delta's 47-page Informational Brief is available for free at: http://bankrupt.com/misc/deltainformationalbrief.pdf A full-text copy of Mr. Kasper's 71-page Affidavit is available for free at http://bankrupt.com/misc/kasperaffidavit.pdf Estimated Postpetition Expenses for Next 30 Days Delta estimates its weekly payroll, on a consolidated basis, for the 30-day period following the filing of the chapter 11 petitions will be: Payroll for all employees, inc. officers $67,417,442 Payroll for officers $212,213 Payroll for non-employee directors $183,000 Delta projects that professional fees for financial and business consultants retained in connection with the administration of the chapter 11 proceeding (on a weekly basis) will be: Advisors Engagement Scope Weekly Cost -------- ---------------- ----------- Babcock & Brown Fleet & aircraft matters $125,000 Greenhill & Company Labor negotiations 50,000 Giuliani Capital Advisors Restructuring advice, constituency interface, cash flow forecast, liquidity 100,000 The Blackstone Group Debt negotiation 50,000 ---------- Total $325,000 Delta estimates that it will spend $172 million more than it brings in during the next 30 days, making prompt approval of a DIP Financing Facility critical: Estimated Cash Receipts & Disbursements for the 30-Day Period following Sept. 14, 2005 Projected Cash Receipts $1,491,000,000 Projected Cash Disbursements 1,590,000,000 -------------- Projected Net Cash Loss $172,000,000 ============== These 30-day cash projections, Mr. Bastian indicates, assumes that Delta's Unpaid Obligations a month from now will total $207,000,000 and Delta will be owed $825,000,000 on account of Unpaid Receivables. ----------------------------------------------------------------- [00002] DELTA AIR LINES' BALANCE SHEET AT JUNE 30, 2005 ----------------------------------------------------------------- DELTA AIR LINES, INC. Consolidated Balance Sheets (Unaudited) As of June 30, 2005 ASSETS CURRENT ASSETS: Cash and cash equivalents $1,341,000,000 Short-term investments 330,000,000 Restricted cash 368,000,000 Accounts receivable, net of an allowance for uncollectible accounts of $39 at June 30, 2005 and $38 at December 31, 2004 923,000,000 Expendable parts and supplies inventories, net of an allowance for obsolescence of $192 at June 30, 2005 and $184 at December 31, 2004 219,000,000 Prepaid expenses and other 605,000,000 --------------- Total current assets 3,786,000,000 --------------- PROPERTY AND EQUIPMENT: Flight equipment 20,935,000,000 Accumulated depreciation (7,002,000,000) --------------- Flight equipment, net 13,933,000,000 Flight and ground equipment under capital leases 516,000,000 Accumulated amortization (197,000,000) --------------- Flight and ground equipment under capital leases, net 319,000,000 --------------- Ground property and equipment 4,897,000,000 Accumulated depreciation (2,838,000,000) --------------- Ground property and equipment, net 2,059,000,000 --------------- Advance payments for equipment 65,000,000 --------------- Total property and equipment, net 16,376,000,000 --------------- OTHER ASSETS: Goodwill 227,000,000 Operating rights and other intangibles, net of accumulated amortization of $187 at June 30, 2005 and $185 at December 31, 2004 76,000,000 Restricted investments for Boston airport terminal project 76,000,000 Other noncurrent assets 1,020,000,000 --------------- Total other assets 1,399,000,000 --------------- Total assets $21,561,000,000 =============== LIABILITIES AND SHAREOWNERS' DEFICIT CURRENT LIABILITIES: Current maturities of long-term debt and capital leases $1,125,000,000 Accounts payable, deferred credits and other accrued liabilities 1,678,000,000 Air traffic liability 2,221,000,000 Taxes payable 591,000,000 Accrued salaries and related benefits 1,151,000,000 Accrued rent 155,000,000 --------------- Total current liabilities 6,921,000,000 --------------- NONCURRENT LIABILITIES: Long-term debt and capital leases 12,459,000,000 Long-term debt issued by Massachusetts Port Authority 498,000,000 Postretirement benefits 1,742,000,000 Accrued rent 648,000,000 Pension and related benefits 5,209,000,000 Other 296,000,000 --------------- Total noncurrent liabilities 20,852,000,000 --------------- DEFERRED CREDITS: Deferred gains on sale and leaseback transactions 350,000,000 Deferred revenue and other credits 147,000,000 --------------- Total deferred credits 497,000,000 --------------- COMMITMENTS AND CONTINGENCIES EMPLOYEE STOCK OWNERSHIP PLAN PREFERRED STOCK: Series B ESOP Convertible Preferred Stock: $1.00 par value, $72.00 stated and liquidation value, 5,105,264 shares issued and outstanding at June 30, 2005; and 5,417,735 shares issued and outstanding at December 31, 2004 368,000,000 Unearned compensation under employee stock ownership plan (92,000,000) --------------- Total Employee Stock Ownership Plan Preferred Stock 276,000,000 --------------- SHAREOWNERS' DEFICIT: Common stock: $0.01 par value, 900,000,000 shares authorized, 202,081,648 shares issued at June 30, 2005; and $1.50 par value, 450,000,000 shares authorized, 190,745,445 shares issued at December 31, 2004 2,000,000 Additional paid-in capital 3,119,000,000 Accumulated deficit (5,837,000,000) Accumulated other comprehensive loss (2,148,000,000) Treasury stock at cost, 44,929,082 shares at June 30, 2005 and 50,915,002 shares at December 31, 2004 (2,121,000,000) --------------- Total shareowners' deficit (6,985,000,000) --------------- Total liabilities and shareowners' deficit $21,561,000,000 =============== ----------------------------------------------------------------- [00003] COMPANY'S PRESS RELEASE ANNOUNCING CHAPTER 11 FILING ----------------------------------------------------------------- Delta & Subsidiaries Will Continue to Operate Full Flight Schedule, Honor Tickets and Reservations, Maintain SkyMiles Program, and Provide Pay and Benefits to Employees Company Arranging $2.05 Billion In Post-Petition Financing ATLANTA, Georgia -- September 14, 2005 -- Delta Air Lines (NYSE: DAL) today announced that to address its financial challenges and support its ongoing efforts to become a simpler, more efficient and cost-effective airline, the company and its subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Delta's Board of Directors, in a unanimous decision, directed the company to take this action after determining that a Chapter 11 reorganization is in the best long-term interest of the company, its employees, customers, creditors, business partners and other stakeholders. Delta expects to continue normal business operations today and throughout the reorganization process. Specifically, it expects to continue to: * Operate its full schedule of flights worldwide; * Honor tickets and reservations and provide refunds and exchanges as usual; * Maintain the SkyMiles program and other customer service programs; * Provide amenities like Crown Room Clubs and international lounges in select cities; * Provide employee wages, healthcare coverage, vacation, sick leave and similar benefits without interruption; and * Pay suppliers for goods and services received during the reorganization process. "The action we have taken is a necessary and responsible step to preserve Delta's value for our creditors, customers, employees, business partners and other stakeholders as we address our financial challenges and work to secure our future," said Delta CEO Gerald Grinstein. "Delta is open for business as usual and will continue normal operations throughout the reorganization process. Our customers can be confident that they remain our number one priority and that their travel plans and SkyMiles are secure." To help support its business during the Chapter 11 proceedings, Delta has obtained a commitment for $1.7 billion in debtor-in-possession (DIP) financing from GE Commercial Finance and Morgan Stanley as Co-Lead Arrangers. The commitment includes up to $1.4 billion of financing on an interim basis pending final approval of the full DIP financing at a later date. In addition to the commitment for the new $1.7 billion DIP financing, which replaces approximately $980 million in secured pre-petition financing from GE Commercial Finance and American Express, Delta has an agreement in principle with American Express to provide the airline with an additional $350 million of secured financing. Altogether, Delta's post-petition financing arrangements now total up to $2.05 billion, an increase of approximately $1.07 billion from the company's pre-petition secured credit facilities. During the last year, Delta has developed and implemented a transformation plan aimed at achieving approximately $5 billion in annual financial benefits by the end of 2006 as compared to 2002. As of June 30, 2005, Delta had implemented initiatives intended to achieve approximately 85 percent of these benefits and was ahead of schedule to meet its target. However, persistent record-high fuel costs at unpredicted and unprecedented levels and the continued downward pressure on revenues within the airline industry substantially outpaced and masked these benefits. Despite doing everything it could to preserve its liquidity, Delta has determined that it has no alternative but to utilize the protections and flexibilities provided by the U.S. bankruptcy laws. Delta intends to use the additional time and flexibility provided by the Chapter 11 process to expand its transformation plan and move the company toward a more secure future. "Delta's financial problems are severe, but by no means insurmountable," Mr. Grinstein said. "We are optimistic about our future because we have been working for months on a business plan that builds on the substantial improvements we've already made and demonstrates that Delta can return to profitability once the company is able to restructure appropriately." Delta understands that any cost savings that it is able to achieve while in Chapter 11 must fit within the strategic context of a sensible business plan that remakes the airline into a profitable company. Delta has made great strides over the last few years to adapt itself to the new competitive environment, undertaking major cost-cutting initiatives and massive network, scheduling and operational improvements - without adversely impacting its customer service rankings. As part of these efforts to improve efficiency and bottom line results, Delta undertook the largest single-day schedule restructurings in its history, including the redesign of the Atlanta hub operation and the elimination of its hub operation at Dallas/Ft. Worth airport. The airline also restructured its domestic fare system with industry- leading "Simplifares," rolled out extensive new customer-focused airport technology, and outsourced a significant portion of its heavy maintenance, among other steps. Delta's in-court business plan builds on these achievements and on its competitive strengths and is designed to return the carrier to profitability. Delta plans to use Chapter 11 to reconfigure its fleet and network footprint in a manner that will enhance its revenues. First, Delta plans to simplify and streamline its fleet by targeting four aircraft types to be removed by the end of 2006, so that only seven mainline aircraft types will remain. Second, Delta plans to deploy smaller aircraft on many of its routes so that it utilizes the proper-sized aircraft for the route it is flying. Third, Delta will continue to right-size its hub operations. Fourth, Delta plans to increase its capacity on international routes with greater profit potential. In addition to these substantial network and operational improvements, Delta has determined that further job reductions and changes to employee pay and benefits are a necessary component of its business plan. "Any changes in pay and benefits will be in the context of a comprehensive business plan that is equitable and involves other Delta stakeholders," said Grinstein. "Importantly, Delta people at every level and across all work groups also will have a greater ability than they do now to benefit from our financial recovery and operational excellence," he added. The company said it will be communicating to employees more details about these changes as early as next week. On September 12, Delta presented the union that represents Delta pilots, the Air Line Pilots Association (ALPA), with pilot cost-saving proposals necessary to help address the company's severe challenges. Given its financial situation and the need to preserve as much cash as possible for its operations, Delta does not plan to make the qualified defined benefit plan funding contributions soon due. "Missing contributions does not mean that our qualified plans stop paying monthly retirement benefits or that we have initiated the process to terminate the plans," Grinstein said. The company is continuing to pursue pension reform legislation that might make the plans more affordable. However, because of Delta's growing financial pressures, there can be no guarantees - even with pension reform - about the future of Delta's qualified defined benefit pension plans. "Ultimately, what we can afford in the future airline business environment, as well as the nature of any legislation, will determine what is possible," Grinstein asserted. He added, "As we deal with our financial challenges, it is important to keep in mind that Delta - the world's second-largest passenger airline, the leading U.S. carrier across the Atlantic and the third-largest carrier to Latin America - has formidable strengths: Delta people and the customer loyalty their superior service inspires; the significant network advantages derived from having the world's largest hub (in Atlanta), supported by our hubs in Cincinnati, Salt Lake City, New York-JFK and many focus cities; Song - our award-winning, low-fare air service; and Delta's cutting-edge, passenger-friendly technology are but a few of our distinguishing assets." He concluded, "As Delta rises to meet new challenges, I am certain some things will never change. Our resolve to keep flying while upholding the highest standards of safety and service will not falter. Our commitment to the principle that Delta people will share in any success their sacrifice helps make possible will not waver. Our gratitude for the loyalty of our customers and the support of the communities we serve will not subside. And, our pride in this great company and in one another will not be shaken." Delta's Chapter 11 cases were filed today in U.S. Bankruptcy Court for the Southern District of New York. Delta has filed a motion with the Court seeking interim relief that will ensure the company's continued ability to conduct normal operations. If such interim relief is granted by the Court, Delta will be authorized, among other things, to: * Provide employee wages, healthcare coverage, vacation, sick leave and similar benefits without interruption. * Honor pre-petition obligations to customers and continue customer programs including Delta's SkyMiles frequent- flyer program. * Pay for fuel under existing fuel supply contracts, and honor existing fuel supply, distribution and storage agreements. * Assume contracts relating to interline agreements with other airlines. * Pay pre-petition obligations to foreign vendors, foreign service providers and foreign governments. * Continue maintenance of existing bank accounts and existing cash management systems. Delta's principal bankruptcy counsel is Davis Polk & Wardwell. Its financial adviser is the Blackstone Group. More information about Delta's Chapter 11 filing is available on the Internet at http://www.delta.com/restructure Court filings and claims information are available at http://www.deltadocket.com/ Delta expects to begin submitting monthly operating reports to the Bankruptcy Court in November and also plans to post these monthly operating reports on the Investor Relations section of http://www.delta.com/ The company will continue to file quarterly and annual reports with the Securities and Exchange Commission, which will also be available in the Investor Relations section of http://www.delta.com/ Delta Air Lines is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 502 destinations in 88 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta's marketing alliances allow customers to earn and redeem frequent flier miles on more than 14,000 flights offered by SkyTeam and other partners. Delta is a founding member of SkyTeam, a global airline alliance that provides customers with extensive worldwide destinations, flights and services. Customers can check in for flights, print boarding passes and check flight status at http://www.delta.com/ ----------------------------------------------------------------- [00004] DELTA DEBTORS' CHAPTER 11 DATABASE ----------------------------------------------------------------- Debtor entities filing separate chapter 11 petitions: Case No. Debtor -------- ------ 05-17921 Song, LLC 05-17922 Crown Rooms, Inc. 05-17923 Delta Air Lines, Inc. 05-17924 Comair, Inc. 05-17926 Delta Connection Academy, Inc. 05-17927 Delta Technology, LLC 05-17928 DAL Global Services, LLC 05-17931 Comair Holdings, LLC 05-17932 Delta Corporate Identity, Inc. 05-17935 Comair Services, Inc. 05-17936 Delta Ventures III, LLC 05-17937 DAL Moscow, Inc. 05-17939 Delta Loyalty Management Services, LLC 05-17941 DAL Aircraft Trading, Inc. 05-17942 Delta AirElite Business Jets, Inc. 05-17943 Epsilon Trading, Inc. 05-17945 Delta Benefits Management, Inc. 05-17946 ASA Holdings, Inc. 05-17947 Kappa Capital Management, Inc. Chapter 11 Petition Date: September 14, 2005 Bankruptcy Court: United States Bankruptcy Court Southern District of New York Alexander Hamilton Custom House One Bowling Green, 5th Floor New York, New York 10004-1408 Telephone (212) 668-2870 Bankruptcy Judge: The Honorable Prudence Carter Beatty Debtors' Bankruptcy Counsel: Marshall S. Huebner, Esq. Davis Polk & Wardwell 450 Lexington Avenue New York, NY 10017 Telephone (212) 450 - 4000 Debtors' Conflicts Counsel: Lawrence M. Handelsman, Esq. Stroock & Stroock & Lavan LLP 180 Maiden Lane New York, NY 10038 Telephone (212) 806-5426 e-mail: lhandelsman@stroock.com Debtors' Labor Counsel: Scott A. Kruse, Esq. Gibson, Dunn & Crutcher LLP 333 South Grand Avenue Los Angeles, California 90071-3197 Tel: (213) 229-7000 Fax: (213) 229-7520 e-mail: SKruse@gibsondunn.com Debtors' Aircraft Counsel: Richard F. Hahn, Esq. Debevoise & Plimpton LLP 919 Third Avenue New York, NY 10022-6225 Telephone (212) 909-6235 Fax (212) 909-6836 e-mail: rfhahn@debevoise.com Debtors' Pension Benefits Counsel: Philip C. Cook, Esq. Alston & Bird LLP One Atlantic Center 1201 West Peachtree Street Atlanta, GA 30309-3424 Tel: 404-881-7491 Fax: 404-881-7777 e-mail: pcook@alston.com Debtors' Aviation Regulatory Counsel: Robert E. Cohn, Esq. Hogan & Hartson, LLP 555 Thirteenth Street, NW Washington, DC 20004 Tel: 202-637-4999 Fax: 202-637-5910 e-mail: recohn@hhlaw.com Debtors' Financial Advisor: The Blackstone Group L.P. Debtors' Aircraft Financing Advisor: Babcock & Brown LP Debtors' Financial Advisor -- Labor Relations: Greenhill & Co., LLC Debtors' Notice & Claims Agent: Bankruptcy Services LLC U.S. Trustee: Carolyn S. Schwartz Office of United States Trustee 33 Whitehall Street, 21st Floor New York, NY 10004 Telephone (212) 510-0500 ----------------------------------------------------------------- [00005] LIST OF SONG, LLC'S 20-LARGEST UNSECURED CREDITORS ----------------------------------------------------------------- Creditor Amount Description -------- ------ ----------- PANASONIC AVIONICS CORPORATION $581,995 TRADE VENDOR 22333 29th Dr SE BOTHELL, WA 98021-7814 THE MEDIA KITCHEN $484,373 TRADE VENDOR DIV OF KIRSHENBAUM BOND & PARTNERS P.O. Box 5613 FPO NEW YORK, NY 10087-5613 ECHOSTAR SATELLITE CORPORATION $189,025 TRADE VENDOR DBA DISH NETWORK ACCT 2525735 5701 S. Santa Fe LITTLETON, CO 80120 SPAFAX AIRLINE NETWORK LTD $127,111 TRADE VENDOR 4695 Macarthur Court, Suite 370 NEWPORT BEACH, CA 92660 CREATIVE ARTISTS AGENCY $125,500 TRADE VENDOR 9830 Wilshire Blvd. BEVERLY HILLS, CA 90212 SHEPARDSON STERN & KAMINSKY $73,129 TRADE VENDOR 88 Pine Street, 30th Floor NEW YORK, NY 10005 M K G PRODUCTIONS $56,750 TRADE VENDOR 53 West 21 Street, 3rd Floor NEW YORK, NY 10010 ADP, INC. $45,318 TRADE VENDOR 5800 Winward Pkwy, A-210 ALPHARETTA, GA 30005 EFLYTE INC $18,442 TRADE VENDOR One Independent Drive, Suite 106 JACKSONVILLE, FL 32202 HALL & PARTNERS USA INC $14,750 TRADE VENDOR 72 Spring St NEW YORK, NY 10012-4019 MODEM MEDIA $11,667 TRADE VENDOR 230 East Ave NORWALK, CT 06855-1935 ADP BENEFIT SERVICES $10,236 TRADE VENDOR 4900 University Avenue WEST DES MOINES, IA 50266 DIVERSIFIED ELECTRONICS INC $5,840 TRADE VENDOR 309 Agnew Dr C FOREST PARK, GA 30297-2606 EMORY UNIVERSITY $5,000 TRADE VENDOR 1300 Clifton Rd. ATLANTA, GA 30322 LADAS & PARRY $4,697 TRADE VENDOR 224 S Michigan Ave CHICAGO, IL 60604-2505 THE FLIGHT STATION, INC. $1,524 TRADE VENDOR 3430 Lang Ave HAPEVILLE, GA 30354-1306 MELANIE PAYKOS DESIGN, INC. $900 TRADE VENDOR 3457 S. LA Cienega Blvd. LOS ANGELES, CA 90016 CORSOLUTIONS MEDICAL, INC. $699 TRADE VENDOR 38755 Eagle Way CHICAGO, IL 60678-1387 LUCE INFORMATION SERVICES $633 TRADE VENDOR P.O. Box 379 TOPEKA, KS 66601-0379 SOURCE INC. $325 TRADE VENDOR 14060 Proton Rd. DALLAS, TX 75244-3673 ----------------------------------------------------------------- [00006] LIST OF CROWN ROOMS' 20-LARGEST UNSECURED CREDITORS ----------------------------------------------------------------- Crown Rooms, Inc., says it has no unsecured creditors other than affiliated entities holding intercompany claims. ----------------------------------------------------------------- [00007] LIST OF DELTA AIR LINES' 20-LARGEST UNSECURED CREDITORS ----------------------------------------------------------------- Creditor Amount Description -------- ------ ----------- BOEING COMMERCIAL AIRPLANE GROUP $3,718,340,366 FUTURE ATTN: VP OF CONTRACTS - R. LEO LYONS AIRCRAFT P.O. BOX 3707 COMMITMENTS MAIL STOP 75-38 SEATTLE, WA 98124-2207 USA BOEING COMM AIRPLANE CO $2,628,540 TRADE VENDOR SEATTLE, WA 98124-2207 -------------- $3,720,968,906 THE BANK OF NEW YORK $924,895,000 DELTA AIR DAVE CSATARI LINES 8.30% VICE PRESIDENT Bonds ONE WALL STREET NEW YORK, NY 10286 THE BANK OF NEW YORK $537,500,000 DELTA AIR LINES 8.125% DUE 2039 THE BANK OF NEW YORK $499,340,000 DELTA AIR LINES 7.90% THE BANK OF NEW YORK $497,585,000 MASSPORT SERIES A, B & C THE BANK OF NEW YORK $350,000,000 DELTA AIR LINES INC. 8% CONVERTBLE THE BANK OF NEW YORK $325,000,000 DELTA AIRLINES 2.875% CONV. SR. BONDS THE BANK OF NEW YORK $295,495,000 DEVELP AUTH OF CLAYTON CNTY-A, B, C THE BANK OF NEW YORK $247,772,000 DELTA AIR LINES 10.00% SENIOR NOTES THE BANK OF NEW YORK $135,202,000 8.00% NOTES DUE 2007 SUNTRUST BANK $124,770,000 FULTON PATRICIA SRUELL COUNTY - 25 PARK PLACE NE, 24TH FLOOR OCIII MAIL CODE GA-ATLANTA-0008 ATLANTA, GA 30338 THE BANK OF NEW YORK $121,975,000 DELTA AIR LINES 7.70% THE BANK OF NEW YORK $105,766,000 DELTA AIR LINES 9.75% DEBENTURES THE BANK OF NEW YORK $102,455,000 DELTA AIR LINES 9.00% DEBENTURES THE BANK OF NEW YORK $84,665,000 DELTA AIR LINES 10.125% DEBENTURES THE BANK OF NEW YORK $68,725,000 DELTA AIR LINES 10.375% DUE 2011 THE BANK OF NEW YORK $63,548,000 DELTA AIR LINES INC. 9.25% DUE 2022 THE BANK OF NEW YORK $54,329,000 DELTA AIR LINES INC. 10.375% SUNTRUST BANK $29,900,000 FULTON COUNTY - 1992 THE BANK OF NEW YORK $27,500,000 DELTA AIR LINES MTN SERIES B ----------------------------------------------------------------- [00008] LIST OF COMAIR, INC.'S 20-LARGEST UNSECURED CREDITORS ----------------------------------------------------------------- Creditor Amount Description -------- ------ ----------- BOMBARDIER INC,-CANADA $3,474,492 TRADE VENDOR NATIONAL BANK OF CAN ABA #026005487 MONTREAL, QUEBEC BOMBARDIER SERVICES $900,648 TRADE VENDOR ATTN: FINANCE DEPT. 2400 AVIATION WAY BRIDGEPORT, WV 26330 LUFTHANSA A.E.R.O. $792,265 TRADE VENDOR RUDOLF-DIESEL-STRASS 55232 ALZEY (GERMANY) PORT AUTHORITY OF NY $737,278 TRADE VENDOR P.O. BOX 95000-1517 PHILADELPHIA, PA 19195-1517 GOODRICH AEROSPACE CORP $309,395 TRADE VENDOR FILE 53028 LOS ANGELES, CA 90074-3028 SHORT BROS. PLC $304,399 TRADE VENDOR HSBC BANK PLC CITY OF LONDON CORPO LONDON, ENGLAND, E14 5XL KENTON CO. AIRPORT B $229,553 TRADE VENDOR P.O. BOX 752000 CINCINNATI, OH 45275 MASSACHUSETTS PORT AUTHORITY $222,135 TRADE VENDOR P.O. BOX 3471 BOSTON, MA 02241-3471 CINTAS CORPORATION $199,627 TRADE VENDOR P.O. BOX 97627 CHICAGO, IL 60678-7627 JEPPESEN-SANDERSON I $186,212 TRADE VENDOR DEPT. 1303 DENVER, CO 80291-1303 REEBAIRE AIRCRAFT, I $170,703 TRADE VENDOR P.O. BOX 1409 MENA, AR 71953 GOLDEN TOUCH TRANSPORTATION $168,884 TRADE VENDOR 109-15 14TH AVE. COLLEGE POINT, NY 11356 METRO. WASHINGTON AIRPORT $148,310 TRADE VENDOR P.O. BOX 2143 MERRIFIELD, VA 22116-2143 ROSEMOUNT AEROSPACE $139,935 TRADE VENDOR DEPT CH 10564 PALATINE, IL 60055-0564 SUNDSTRAND ATG $121,799 TRADE VENDOR PO BOX 360951 PITTSBURGH, PA 15251 PROFESSIONAL DATA RE INC. $119,178 TRADE VENDOR P.O. BOX 643445 CINCINNATI, OH 45264-3445 DADE COUNTY AVIATION $119,119 TRADE VENDOR MIAMI INT'L AIRPORT P.O. BOX 592616 MIAMI, FL 33159-2616 SYSTEMS INSIGHT, INC $110,288 TRADE VENDOR 514 MADISON AVE., SUITE 200 COVINGTON, KY 41011 S.A.R.A.A. $96,558 TRADE VENDOR P.O. BOX 12934 PHILADELPHIA, PA 19101-0934 WINGATE INN $93,662 TRADE VENDOR 33 BEACON DR. GREENVILLE, SC 29615 ----------------------------------------------------------------- [00009] LIST OF DELTA CONNECTION'S 20-LARGEST UNSECURED CREDITORS ----------------------------------------------------------------- Creditor Amount Description -------- ------ ----------- TEXTRON LYCOMING $41,794 TRADE VENDOR P.O. BOX 371097M PITTSBURGH, PA 15251 AIR ORLANDO $20,720 TRADE VENDOR 51 N.CRYSTAL LAKE DR ORLANDO, FL 32803 JEPPESEN SANDERSON, INC. $12,137 TRADE VENDOR DEPT 1303 DENVER, CO 80291-1303 FEDERAL AVIATION ADM $11,786 TRADE VENDOR 6303 IVY LNE, SUITE GREENBELT, MD 20770-6325 AVIATION PLUS, INC. $10,888 TRADE VENDOR P.O. BOX 161344 MIAMI, FL 33116 FLORIDA POWER & LIGHT $10,311 TRADE VENDOR GENERAL MAIL FACILITT [Address Not Provided] HACHETTE FILIPACCHI $10,162 TRADE VENDOR MEDIA U.S., INC. DEPT 5227-31 CHICAGO, IL 60694-1327 XPERIENT $8,632 TRADE VENDOR 2290 RONALD REGAN BL, SUITE 136 LONGWOOD, FL 32750 AMERICAN AERO SERVIC $8,089 TRADE VENDOR 333 SOUTH STREET NEW SMYRNA BEACH, FL 32168 KEY EQUIPMENT FINANCE $8,016 TRADE VENDOR PAYMENT PROCESSING P.O. BOX 203901 HOUSTON, TX 77216-3901 API $7,159 TRADE VENDOR AEROSPACE PRODUCTS INC P.O. BOX 1000 MEMPHIS, TN 38148-0026 THE NEW PIPER AIRCRAFT $7,156 TRADE VENDOR ATTN: CLAIRE GUFFANT 2926 PIPER DRIVE VERO BEACH, FL 32960 IRIDIA TECHNOLOGIES $6,068 TRADE VENDOR 195 SOUTH WESTMONTE, SUITE 1108 ALTAMONTE SPRINGS, FL 32714 AEROPARTS AVIATION $5,109 TRADE VENDOR 8233 MARGARITA DRIVE ORLANDO, FL 32817 AIRCRAFT TOOL SUPPLY $4,393 TRADE VENDOR P.O. BOX 370 OSCODA, MI 48750 AIRPARTS COMPANY, INC. $3,969 TRADE VENDOR P.O. BOX 9268 FT. LAUDERDALE, FL 33310-9268 PIPER PARTS PLUS, LLC $3,436 TRADE VENDOR P.O. BOX 1000, DEPT. 433 MEMPHIS, TN 38148-0433 BELLSOUTH ADVERTISING $3,260 TRADE VENDOR PUBLISHING CORP. P.O. BOX 105024 ATLANTA, GA 30348-5024 AEROTECH OF LOUISVILLE $3,132 TRADE VENDOR 2209 WATTERSON TRAIL LOUISVILLE, KY 40299-2531 GRAINGER, INC. $2,946 TRADE VENDOR P.O. BOX 419267 DEPT 580 - 818085276 KANSAS CITY, MO 64141-6267 ----------------------------------------------------------------- [00010] LIST OF DAL GLOBAL'S 20-LARGEST UNSECURED CREDITORS ----------------------------------------------------------------- Creditor Amount Description -------- ------ ----------- TUG TECHNOLOGIES CORPORATION $141,958 TRADE VENDOR MARIETTA, GA 30062 NETASPX, INC. $42,517 TRADE VENDOR HERNDON, VA 20171 KRONOS INCORPORATED $41,766 TRADE VENDOR CHELMSFORD, MA 01824 ADAPTIVE ENGINNEERING LTD. $40,240 TRADE VENDOR CALGARY, AB T2G 1V1 KAVI SOFTWARE INC $38,315 TRADE VENDOR SUWANEE, GA 30024 INSIGHT GLOBAL, INC. $32,806 TRADE VENDOR ATLANTA, GA 30319 JACKSONVILLE AIRPORT AUTHORITY $26,529 TRADE VENDOR JACKSONVILLE A T O, FL 32229-4018 PRIMEFLIGHT AVIATION SERVICES $25,602 TRADE VENDOR REP0100=000288 CINCINNATI, OH 45264-3041 O.C. TANNER RECOGNITION COMPANY $24,109 TRADE VENDOR SALT LAKE CITY, UT 84115-2383 AIRCRAFT SERVICE INTL GROUP $23,559 TRADE VENDOR REP 0100 =000334 0231=448 DALLAS, TX 75391-0701 VERIFICATIONS INCORPORATED $21,886 TRADE VENDOR MINNEAPOLIS, MN 55480-1150 CIGNA $19,688 TRADE VENDOR CHICAGO, IL 60693-0050 FORTBRAND SERVICES, INC. $19,648 TRADE VENDOR PLAINVIEW, NY 11803 GLOBAL TECHNOLOGIES INT'L CORP. $17,325 TRADE VENDOR MIAMI, FL 33183 METROPOLITAN WASHINGTON AIRPT AUTHORITY $15,703 TRADE VENDOR REP 000168 =0100 000430=0231 MERRIFIELD, VA 22116-2143 PORT OF OAKLAND $15,034 TRADE VENDOR OAKLAND INT'L AIRPORT OAKLAND, CA 94621 PREMIUM SERVICES MANAGEMENT, LLC $15,015 TRADE VENDOR ATLANTA, GA 30344 MANASSAS ICE & FUEL COMPANY, INC. $14,727 TRADE VENDOR MIFCO MANASSAS, VA 20110 CONTINENTAL BUILDING MAINTENANCE $14,392 TRADE VENDOR CHANTILLY, VA 20151 DIGITAL CONSULTING & SOFTWARE $12,776 TRADE VENDOR SUGAR LAND, TX 77478 ----------------------------------------------------------------- [00011] LIST OF DELTA TECHNOLOGY'S 20-LARGEST UNSECURED CREDITORS ----------------------------------------------------------------- Creditor Amount Description -------- ------ ----------- HEWLETT-PACKARD $2,526,477 TRADE VENDOR DALLAS, TX 75230 HEWLETT-PACKARD $333,854 TRADE VENDOR DALLAS, TX 75230 WORLDSPAN L P $2,328,318 TRADE VENDOR ATLANTA, GA 30339-3153 HEWLETT-PACKARD (CISCO) $1,504,886 TRADE VENDOR ROSWELL, GA 30075 SAS INSTITUTE INC $1,200,000 TRADE VENDOR CARY, NC 27513 MSLI, GP $1,000,387 TRADE VENDOR RENO, NV 89511-1137 SUN MICROSYSTEMS INC $565,558 TRADE VENDOR ATTN: SHANNON JUDGE ALPHARETTA, GA 30005-2026 CISCO SYSTEMS CAPITAL CORP $514,841 TRADE VENDOR FILE NO 73226 SAN JOSE, CA 95134 NCR CORPORATION $328,592 TRADE VENDOR CHARLOTTE, NC 28275-5245 IBM $323,012 TRADE VENDOR CHICAGO, IL 60693 AVAYA FINANCIAL SERVICES $273,125 TRADE VENDOR CHICAGO, IL 60673-3000 KINETICS, INC. $270,272 TRADE VENDOR LAKE MARY, FL 32746 PARITY TELTECH $268,804 TRADE VENDOR NEW YORK, NY 10006-3003 MICROSOFT CORPORATION $231,315 TRADE VENDOR DALLAS, TX 75248-6411 HYPERION SOLUTIONS CORPORATION $202,490 TRADE VENDOR SUNNYVALE, CA 94089 HEWLETT-PACKARD COMPANY $197,287 TRADE VENDOR BOISE, ID 83714 1 E LIMITED $169,050 TRADE VENDOR EALING, LONDON W5 5TL TANGOSOL, INC. $157,279 TRADE VENDOR SOMERVILLE, MA 02144 AVAYA COMMUNICATION $110,880 TRADE VENDOR REP0500=000612 PARSIPPANY TROY HILL, NJ 07054 COMPUTER HORIZONS CORP $109,174 TRADE VENDOR MOUNTAIN LAKES, NJ 07046 THE RESEARCH BOARD $106,000 TRADE VENDOR NEW YORK, NY 10021 ----------------------------------------------------------------- [00012] LIST OF COMAIR HOLDINGS' 20-LARGEST UNSECURED CREDITORS ----------------------------------------------------------------- Creditor Amount Description -------- ------ ----------- SED-IT, LLC $8,795 TRADE VENDOR 3901 YARDLEY COURT, SUITE 205 LOUISVILLE, KY 40299 SOFTWARE ARCHITECTS $6,864 TRADE VENDOR LBX 619785 P.O. BOX 6197 CHICAGO, IL 60680-6197 SOCIETE INTERNATIONAL $6,000 TRADE VENDOR DE TELECOMMUNICATION ATTN: BETH HIGGINS BOHEMIA, NY 11716 SABRE INC. $2,650 TRADE VENDOR 7285 COLLECTION CENT CHICAGO, IL 60693 HEWLETT PACKARD $2,140 TRADE VENDOR DIRECT MARKETING DIV P.O. BOX 44548 SAN FRANCISCO, CA 94144 INSTITUTE FOR INT'L $1,721 TRADE VENDOR P.O. BOX 3685 BOSTON, MA 02241-3685 RUMPKE CONTAINER SERVICE $1,652 TRADE VENDOR P.O. BOX 538708 CINCINNATI, OH 45251 CINCINNATI BELL TECH $1,573 TRADE VENDOR 1507 SOLUTIONS CENTER CHICAGO, IL 60677-1055 ITSMF PUBLICATIONS $1,500 TRADE VENDOR 13140 COIT RD SUITE 320, LB 120 DALLAS, TX 75240 BUSINESS INFORMATION $1,228 TRADE VENDOR 2201 SPRING GROVE AV CINCINNATI, OH 45214-1723 CREW & BUCHANAN LAW $1,079 TRADE VENDOR 2580 KETTERING TOWER 40 NORTH MAIN STREET DAYTON, OH 45423 ACCESS COMPUTER $961 TRADE VENDOR P.O. BOX 507 WEST CHESTER, OH 45069 ANIXTER INC $909 TRADE VENDOR P.O. BOX 847428 DALLAS, TX 75284-7428 PROGRESSIVE MICROTEC $790 TRADE VENDOR 11150 WOODWARD LANE CINCINNATI, OH 45241 JENSEN TOOLS INC. $775 TRADE VENDOR DEPT CH 10655 PALATINE, IL 60055-0655 COMPUTER SCIENCE CORP $362 TRADE VENDOR P.O. BOX 8500-S-2476 FC 1-2-4-3, LOCKBOX PHILADELPHIA, PA 19178 INSIGHT $349 TRADE VENDOR P.O. BOX 78825 PHOENIX, AZ 85062 STARTRON COMPONETS INC $258 TRADE VENDOR 5933 W CENTURY BLVD, # 130 LOS ANGELES, CA 90045-5445 TRANSOURCE $172 TRADE VENDOR P.O. BOX 60005 CHARLOTTE, NC 28260-0005 CORPORATE EXPRESS $167 TRADE VENDOR P.O. BOX 71217 CHICAGO, IL 60694-1217 ----------------------------------------------------------------- [00013] LIST OF DELTA CORPORATE'S 20-LARGEST UNSECURED CREDITORS ----------------------------------------------------------------- Delta Corporate Identity, Inc., says it has no unsecured creditors other than affiliated entities holding intercompany claims. ----------------------------------------------------------------- [00014] LIST OF COMAIR SERVICES' 20-LARGEST UNSECURED CREDITORS ----------------------------------------------------------------- Creditor Amount Description -------- ------ ----------- AETNA BUILDING MAINTENANCE $4,092 TRADE VENDOR P.O. BOX 713175 COLUMBUS, OH 43271-3175 NSG INC. $3,640 TRADE VENDOR 1014 VINE ST., SUITE 1800 CINCINNATI, OH 45202 CINERGY/ULH&P $3,566 TRADE VENDOR P.O. BOX 740150 CINCINNATI, OH 45274-0150 HYDROTECH INC. $2,603 TRADE VENDOR 10052 COMMERCE PARK CINCINNATI, OH 45246 SMITH & JOLLY $1,666 TRADE VENDOR 13093 E. NAGEL RD ALEXANDRIA, KY 41001 GEM CITY TIRES INC. $1,490 TRADE VENDOR 3680 E. KEMPER RD. SHARONVILLE, OH 45241 AVIATION LABORATORIES $1,420 TRADE VENDOR P.O. BOX 260118 DALLAS, TX 75326-0118 HARPER OIL PRODUCTS $1,378 TRADE VENDOR P.O. BOX 6325 FLORENCE, KY 41022-6325 DOUBLE CHECK COMPANY $958 TRADE VENDOR P.O. BOX 87-9200 KANSAS CITY, MO 64187-9200 BOSSERMAN AVIATION $524 TRADE VENDOR 2327 STATE ROUTE 568 CAREY, OH 43316 BRINKMAN OIL CO. $450 TRADE VENDOR P.O. BOX 631863 CINCINNATI, OH 45263-1863 LYNX ENTERPRISES INC $428 TRADE VENDOR P.O. BOX 18817 FAIRFIELD, OH 45018 KY MOTOR SERVICE $383 TRADE VENDOR P. O. BOX 14240 2701 SPRING GROVE AV CINCINNATI, OH 45250-0240 PRIME OFFICE PRODUCT $382 TRADE VENDOR 4924 PROVIDENT DRIVE CINCINNATI, OH 45246 CARDINAL LABORATORIES $327 TRADE VENDOR 104 NORTH ST. WILDER, KY 41071 FLORENCE HARDWARE CO $274 TRADE VENDOR 7110 DIXIE HWY FLORENCE, KY 41042 D&M BATTERY CO, INC $246 TRADE VENDOR 275 CHEROKEE TRAIL DRY RIDGE, KY 41035 ACCU-TEX SIGNS & BANNERS $153 TRADE VENDOR 4210 DIXIE HWY. ERLANGER, KY 41018 W.W. GRAINGER $149 TRADE VENDOR DEPT 152 P.O. BOX 801906314 PALATINE, IL 60038-0001 NORTHERN SAFETY CO. $141 TRADE VENDOR P.O. BOX 4250 UTICA, NY 13504-4250 ----------------------------------------------------------------- [00015] LIST OF DELTA VENTURES' 20-LARGEST UNSECURED CREDITORS ----------------------------------------------------------------- Delta Ventures III, LLC, says it has no unsecured creditors other than affiliated entities holding intercompany claims. ----------------------------------------------------------------- [00016] LIST OF DAL MOSCOW'S 20-LARGEST UNSECURED CREDITORS ----------------------------------------------------------------- DAL Moscow, Inc., says it has no unsecured creditors other than affiliated entities holding intercompany claims. ----------------------------------------------------------------- [00017] LIST OF DELTA LOYALTY'S 20-LARGEST UNSECURED CREDITORS ----------------------------------------------------------------- Creditor Amount Description -------- ------ ----------- PACE COMMUNICATIONS INC $29,720 TRADE VENDOR PREFORMAT 000706 FOR 0185 ONLY CHARLOTTE, NC 28260 JACKSON SPALDING INC $9,266 TRADE VENDOR COMMUNICATIONS MANAGEMENT ATLANTA, GA 30361-6302 PACE COMMUNICATIONS INC $5,605 TRADE VENDOR PREFORMAT 000706 FOR 0185 ONLY GREENSBORO, NC 27401-1022 ----------------------------------------------------------------- [00018] LIST OF DAL AIRCRAFT'S 20-LARGEST UNSECURED CREDITORS ----------------------------------------------------------------- DAL Aircraft Trading, Inc., says it has no unsecured creditors other than affiliated entities holding intercompany claims. ----------------------------------------------------------------- [00019] LIST OF DELTA AIRELETE'S 20-LARGEST UNSECURED CREDITORS ----------------------------------------------------------------- Creditor Amount Description -------- ------ ----------- LEARJET CORPORATION $95,110 TRADE VENDOR P.O. BOX 844715 DALLAS, TX 75284-4715 AIR ROUTING CARD CENTER $50,143 TRADE VENDOR P.O. BOX 412171 KANSAS CITY, MO 64141-2171 JETRIDE INC. $45,655 TRADE VENDOR P.O. BOX 714912 COLUMBUS, OH 43271-4912 AVERITT AIR INC. $30,170 TRADE VENDOR P.O. BOX 3166 COOKEVILLE, TN 38502 UNIVERSAL WEATHER AN INC. $20,886 TRADE VENDOR P.O. BOX 201033 HOUSTON, TX 77216-1033 CESSNA AIRCRAFT COMP $16,483 TRADE VENDOR P.O. BOX 281188 ATLANTA, GA 30384-1188 SUPERSTITION AVIATIO $16,016 TRADE VENDOR C/O PATRICK DIAL 6404 E. GAINSBROUGH SCOTTSDALE, AZ 85251 JET AVIATION $14,532 TRADE VENDOR P.O. BOX 350034 BOSTON, MA 02241-0534 SWAPS AVIATION PROGR $13,483 TRADE VENDOR 5079 NORTH DIXIE HWY OAKLAND PARK, FL 33334 JET SOLUTIONS, LLC $7,917 TRADE VENDOR 1702 N. COLLINS BLVD, SUITE 190 DALLAS, TX 75080 FD2S $6,825 TRADE VENDOR 500 CHICON AUSTIN, TX 78702 AIRFUEL INTERNATIONAL $6,647 TRADE VENDOR DEPT 135-01 P.O. BOX 6700 DETROIT, MI 48267-0135 AVIATION RESEARCH GROUP $5,000 TRADE VENDOR 212 WEST 8TH ST. CINCINNATI, OH 45202 LIMOLINK, INC. $4,967 TRADE VENDOR 701 TAMA ST. BLDG A, MARION, IA 52302 INNERSYNC STUDIO $4,839 TRADE VENDOR 26 E. 9TH ST. 2ND FL NEWPORT, KY 41071 ELITE AVIATION $3,885 TRADE VENDOR 7501 HAYVENHURST PLA VAN NUYS, CA 91406 FLIGHTWORKS AIR CHARTER $3,761 TRADE VENDOR 500 TOWNPARK LANE, SUITE 350 KENNESAW, GA 30144 AERO CLEAN CORP. $3,648 TRADE VENDOR 1250 AVIATION AVE., SUITE 200S SAN JOSE, CA 95110 CAE SIMUFLITE $3,500 TRADE VENDOR P.O. BOX 846135 DALLAS, TX 75284-6135 ----------------------------------------------------------------- [00020] LIST OF EPSILON TRADING'S 20-LARGEST UNSECURED CREDITORS ----------------------------------------------------------------- Creditor Amount Description -------- ------ ----------- MARATHON ASHLAND PETROLEUM LLC $339,880 TRADE VENDOR REPETITVE CODE 0105=541 HOUSTON, TX 77056 INTERNAL REVENUE SERVICE $75,211 TRADE VENDOR EFTPS - EXCISE TAX CINCINNATI, OH 45999-0009 CALIFORNIA SECRETARY OF STATE $25 TRADE VENDOR SACRAMENTO, CA 94244 ----------------------------------------------------------------- [00021] LIST OF DELTA BENEFITS' 20-LARGEST UNSECURED CREDITORS ----------------------------------------------------------------- Delta Benefits Management, Inc., says it has no unsecured creditors other than affiliated entities holding intercompany claims. ----------------------------------------------------------------- [00022] LIST OF ASA HOLDINGS' 20-LARGEST UNSECURED CREDITORS ----------------------------------------------------------------- ASA Holdings, Inc., says it has no unsecured creditors other than affiliated entities holding intercompany claims. ----------------------------------------------------------------- [00023] LIST OF KAPPA CAPITAL'S 20-LARGEST UNSECURED CREDITORS ----------------------------------------------------------------- Kappa Capital Management, Inc., says it has no unsecured creditors other than affiliated entities holding intercompany claims. ----------------------------------------------------------------- [00024] LIST OF DEBTORS' 5 LARGEST SECURED CREDITORS ----------------------------------------------------------------- Creditor Amount -------- ------ GE CAPITAL AVIATION SERVICES $1,807,237,386 JAMES WENNING SENIOR VICE PRESIDENT STRUCTURED FINANCE 201 HIGH RIDGE RD STAMFORD, CT 06927 EXPORT DEVELOPMENT CANADA $1,020,589,932 JULIAN DESCHATELETS 151 O'CONNOR STREET OTTAWA K1A 1K3 ONTARIO CANADA U.S. Bank N.A. -- EETC 2000-1 A-2 Due 2010 $738,136,000 Corporate Trust DONALD E. SMITH VICE PRESIDENT One Federal Street 3rd Floor Boston, MA 02110 U.S. Bank N.A. -- EETC 2001-1 A-2 Due 2011 $571,148,000 Corporate Trust DONALD E. SMITH VICE PRESIDENT One Federal Street 3rd Floor Boston, MA 02110 THE ROYAL BANK OF SCOTLAND $341,898,493 BRIAN HARVEY SENIOR VICE PRESIDENT 101 PARK AVENUE NEW YORK, NY 10178 ----------------------------------------------------------------- [00025] DEBTORS' MOTION FOR JOINT ADMINISTRATION OF CASES ----------------------------------------------------------------- Bankruptcy Rule 1015(b) provides, in relevant part, that if two or more petitions are pending in the same court by or against a debtor and an affiliate, the court may order a joint administration of the estates. According to Marshall S. Huebner, Esq., at Davis Polk & Wardwell, in New York, Delta Air Lines, Inc., and its debtor-affiliates are "affiliates" as that term is defined under Section 101(2) of the Bankruptcy Code. Delta is the direct or indirect parent of each of the other debtors. The Debtors commenced 19 chapter 11 cases by filing 19 separate chapter 11 petitions with the Court. Given the provisions of the Bankruptcy Code and the Debtors' affiliation, Mr. Huebner says, joint administration of the Debtors' cases is warranted. "Joint administration will avoid the preparation, replication, service and filing, as applicable, of duplicative notices, applications and orders, thereby saving the Debtors considerable expense and resources. The Debtors' financial affairs and business operations are closely related. Many of the motions, hearings and orders in the chapter 11 cases will affect each and every Debtor and their estates." Mr. Huebner assures the Court that the rights of creditors will not be adversely affected because the Debtors are only requesting administrative, and not substantive, consolidation of their estates. Moreover, each creditor can still file its claim against a particular estate. "In fact, all creditors will benefit by the reduced costs that will result from the joint administration of these cases. The Court also will be relieved of the burden of entering duplicative orders and maintaining duplicative files. Finally, supervision of the administrative aspects of these chapter 11 cases by the United States Trustee for the Southern District of New York will be simplified," Mr. Huebner points out. Accordingly, Judge Beatty grants the Debtors' request. Judge Beatty directs that the Debtors' chapter 11 cases are consolidated for procedural purposes only and will be jointly administered by the Court. Judge Beatty directs that all pleadings and papers filed in the Debtors' cases be captioned: UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK _______________________________ | In re: | | Chapter 11 Case No. DELTA AIR LINES, INC., et al., | | 05-17923 (PCB) Debtors. | | (Jointly Administered) | _______________________________| Judge Beatty makes it clear that nothing in her Order will be deemed or construed as directing, precluding, or otherwise effecting any substantive consolidation of any of the Debtors' estates. ----------------------------------------------------------------- [00026] DELTA RECEIVES COURT APPROVAL OF INITIAL INTERIM ORDERS ----------------------------------------------------------------- Orders Enable Delta to Continue Employee Pay & Benefits, Customer Programs, Fuel Contracts & Interline Agreements, Among Other Essential Relief ATLANTA, Georgia -- September 14, 2005 -- Delta Air Lines (NYSE: DAL) has announced that Judge Prudence C. Beatty of the U.S. Bankruptcy Court for the Southern District of New York has entered a series of interim orders that will help facilitate Delta's normal operations until the Court rules on the Company's first day motions. A hearing on the first day motions is scheduled to begin at 2:00 p.m. on Thursday, Sept. 15, 2005, in New York. Delta received interim authorization to, among other things: * Provide employee wages, health care coverage, vacation, sick leave and similar benefits without interruption; * Honor tickets and reservations and provide refunds and exchanges as usual; * Maintain the SkyMiles program and other customer service programs; * Pay for fuel under existing fuel supply contracts, and honor existing fuel supply, pipeline and storage fuel contracts, into-plane service contracts and other fuel service arrangements; * Assume interline agreements, clearinghouse agreements, Airline Reporting Corporation (ARC) agreements, billing and settlement plan agreements, cargo agreements, and the Universal Air Travel Plan (UATP) agreement; * Pay pre-petition obligations owed to creditors who have provided goods and services in foreign countries; and * Continue to use existing cash management systems and maintain existing bank accounts. "We are gratified that the Court has granted our request for immediate approval of certain key motions that allow Delta to continue normal operations," said Edward Bastian, Delta's Chief Financial Officer. "This action ensures a smooth beginning of our Chapter 11 reorganization and is an important step in the continuing transformation of our airline." Delta and its subsidiaries filed to reorganize under Chapter 11 on Sept. 14, 2005, in the U.S. Bankruptcy Court for the Southern District of New York. The case number is 05-17923-PCB. More information about Delta's Chapter 11 filing is available on the Internet at http://www.delta.com/restructure The Interim Orders and other First Day Motions are available online at http://www.deltadocket.com/ Delta Air Lines is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 502 destinations in 88 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta's marketing alliances allow customers to earn and redeem frequent flier miles on more than 14,000 flights offered by SkyTeam and other partners. Delta is a founding member of SkyTeam, a global airline alliance that provides customers with extensive worldwide destinations, flights and services. Customers can check in for flights, print boarding passes and check flight status at http://www.delta.com/ ----------------------------------------------------------------- [00027] FITCH DOWNGRADES DELTA AIR LINES' RATING TO 'D' ----------------------------------------------------------------- CHICAGO, Illinois -- September 14, 2005 -- Fitch Ratings has downgraded the issuer default rating (IDR) of Delta Air Lines, Inc. to 'D' from 'C' following the company's announcement today that it has filed for Chapter 11 bankruptcy court protection. Fitch has also affirmed its issue rating of 'C' and recovery rating of 'R6' on Delta's senior unsecured debt, reflecting the very weak recovery prospects for unsecured creditors in a Delta bankruptcy reorganization. The senior unsecured rating applies to approximately $4.5 billion in debt obligations. Delta's Chapter 11 filing comes despite numerous attempts by the airline to cut unit operating costs, increase unit revenue, restructure debt obligations, and raise additional liquidity through asset sales. Over the past year, Delta has implemented a number of cost-saving and revenue-enhancing initiatives with a goal of achieving $5 billion in annual benefits, including a $1 billion reduction in annual pilot labor costs. However, the combination of much higher jet fuel costs and a still weak domestic pricing environment has thwarted the company's efforts to stabilize its operating profile and generate stronger cash flow from operations. In light of substantial near-term cash obligations for debt maturities, pension contributions, and interest and lease payments, Delta faced the prospect of intensifying liquidity pressures over the next several months. This pressure has been exacerbated by an expected $1.5 billion year-over-year increase in full-year 2005 fuel expense. Delta enters Chapter 11 protection with $1.7 billion in debtor-in-possession (DIP) financing from GE Commercial Finance and Morgan Stanley. In addition, American Express has agreed to provide the airline with $350 million in secured financing. Of the total $2.05 billion in financing, $980 million will be used to repay existing secured financing from GE and American Express, leaving Delta with approximately $1.07 billion in additional liquidity. Based on the high percentage of secured debt in Delta's capital structure, which will receive priority in the settlement of claims, Fitch estimates that recoveries to holders of Delta's unsecured debt obligations will be in the single-digit percentage range. This would be consistent with unsecured debt recoveries in other recent airline bankruptcies (e.g., US Airways' first bankruptcy and United Airlines' plan of reorganization filed with the court this month). Delta's in-court restructuring efforts will likely focus on additional wage and work rule concessions (potentially achieved through the use of Section 1113 of the Bankruptcy Code), a probable termination of existing defined benefit pension plans, and a realignment of the airline's domestic route network to maximize unit revenue in the face of significant low-cost carrier competition. The carrier will likely seek other opportunities to renegotiate aircraft-backed debt and lease obligations to reduce secured claims in a post-Chapter 11 scenario. The 'C' rating on Delta's defaulted unsecured debt obligations follows from Fitch's revised recovery rating methodology guidelines. The 'C' rating represents the lowest possible issue rating for a defaulted security with below average or poor recovery prospects. For more information on Fitch's airline recovery ratings methodology, see the 'Airline Industry Recovery Ratings Guidelines,' available on the Fitch Web site at http://www.fitchratings.com/ in the 'Recovery Ratings' section. ----------------------------------------------------------------- [00028] CIT QUANTIFIES EXPOSURE TO DELTA AIR LINES ----------------------------------------------------------------- NEW YORK, New York -- September 14, 2005 -- CIT Group Inc. (NYSE: CIT), a leading provider of commercial and consumer finance solutions, disclosed its current financing relationship with Delta Air Lines, Inc. Today, Delta announced that the Company and certain of its subsidiaries had filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Under existing lease agreements, Delta has operating leases on two CIT-owned aircraft plus three engines, as well as an equity position in a tax-optimized leveraged lease on one aircraft. In addition, CIT has debt exposure against five Delta aircraft. CIT's total exposure, including secured financing in our Equipment Finance and Vendor Finance businesses, is approximately $100 million. Management believes, based on its current assessment of lease equipment carrying values, Delta credit exposure, and corresponding reserves, that the Delta filing will not have a material adverse impact on our financial results. About CIT CIT Group Inc. (NYSE: CIT), a leading commercial and consumer finance company, provides clients with financing and leasing products and advisory services. Founded in 1908, CIT has nearly $60 billion in assets under management and possesses the financial resources, industry expertise and product knowledge to serve the needs of clients across approximately 30 industries. CIT, a Fortune 500 company and a component of the S&P 500 Index, holds leading positions in vendor financing, factoring, equipment and transportation financing, Small Business Administration loans, and asset-based lending. With its Global Headquarters in New York City and Corporate Offices in Livingston, New Jersey, CIT has approximately 6,000 employees in locations throughout North America, Europe, Latin and South America, and the Pacific Rim. For more information, visit http://www.cit.com/ ----------------------------------------------------------------- [00029] OVERHILL FARMS SAYS IT HAS REDUCED ITS EXPOSURE TO DELTA ----------------------------------------------------------------- In response to Delta Air Lines' Chapter 11 bankruptcy filing, Jim Rudis, Overhill Farms' Chairman and CEO, said in a press release, "Delta's decision was not unexpected, given its much-publicized difficulties, and therefore during recent quarters we have reduced our financial exposure relating to Delta. We expect to take a charge in the fourth fiscal quarter of approximately $150,000." Mr. Rudis added, "Such a write-off would not have a material impact on the liquidity of the company." "Delta . . . has been [an] important and valued customer[] of Overhill Farms for many years," Mr. Rudis said. "Given the financial stresses now facing the entire airline industry, we carefully monitor our receivables from all of our customers in this sector. However, we believe airline meals will continue to be a profitable part of our overall business," he added. Overhill Farms (AMEX: OFI) -- http://www.overhillfarms.com/ -- with offices and production facilities in Vernon, California, is a leading high-volume provider of a broad range of high-quality, frozen food products, including meal entrees, complete plated meals and meal components; soups and sauces; and poultry, meat and fish specialties. The company is a value-added supplier to companies in the foodservice, retail, airline and health care industries. ----------------------------------------------------------------- [00030] GOVERNOR SAYS GEORGIA WILL CONTINUE TO SUPPORT DELTA ----------------------------------------------------------------- ATLANTA, Georgia -- September 14, 2005 -- Governor Sonny Perdue issued the following statement today following the announcement that Delta Airlines will file for Chapter 11 bankruptcy: "I'm confident that Delta will remain a vital part of Georgia's economy. Delta will emerge from this difficult period a leaner, stronger and more financially viable member of our corporate community. The state of Georgia has supported Delta in the past, and will continue to support Delta through this challenge." Following the 2005 legislative session, Governor Perdue signed legislation (HB 341) into law altering sales tax obligations on the purchase of jet fuel. After Delta pays $15 million in state sales taxes on jet fuel, it is exempt from paying further taxes. The Department of Audits and Accounts estimated the legislation will save Delta approximately $13 million annually. *** End of Issue No. 1 ***