bizjournals.com
Delta files order to stop payment on LAX facilities
Thursday October 13, 4:07 pm ET
Bankrupt Delta Air Lines Inc. is seeking a court order to allow it to stop payment on $88 million in bonds that financed its facilities at Los Angeles International Airport.
According to a report from Dow Jones, in the suit, filed Thursday in U.S. Bankruptcy Court in Manhattan, Atlanta-based Delta claims that because its facilities lease at the airport was really a loan, the carrier wasn't required to repay its debt obligation while operating under Chapter 11.
Delta cited the agreement not as a "true lease" but rather a "disguised" financing agreement, namely an unsecured loan. Under bankruptcy law, a company in Chapter 11 can stop making payments on unsecured loans.
(snip)
http://biz.yahoo.com/bizj/051013/1177587.html?.v=1Published October 13, 2005 by the Atlanta Business Chronicle