Republic Airways Holdings Inc. said it sold a $91 million unsecured claim in the bankruptcy case of Delta Air Lines Inc., the third-largest U.S. carrier, to an undisclosed buyer for $44.6 million.
Republic disclosed the sale Monday, the deadline for creditors to vote on a reorganization plan expected to bring Delta out of Chapter 11 bankruptcy. Results of the vote won't be known for several days.
Republic's claim was part of a monetary resolution in a deal under which it agreed to cut back services to Delta.
Republic spokesman Warren Wilkinson couldn't be reached for comment on who bought the claim, or whether the Indianapolis-based carrier already voted on the plan. The sale will close April 11, according to a statement.
The sale is one of many involving Delta claims, as hedge funds and other investors in distressed debt seek to profit from trading in bank debt and claims for services rendered by Delta's business partners.
According to court filings for Delta, Bear Stearns Investment Products Inc. bought about $1.25 billion in claims over the past few months. Other claims buyers included JP Morgan Chase Bank and Strategic Value Master Fund.
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The deal would complete another sizable chunk of the Atlanta carrier's restructuring efforts to cut lease and financing costs on its jet fleet.
Dean Booth, a partner at the law firm Schreeder, Wheeler & Flint who is representing the approximately 4,500 retired pilots, said they are entitled to receive pension payments under...
Executives at Delta also have said that after the company exits bankruptcy, it will consider shedding Comair, a Delta subsidiary that provides regional service for the airline.
United Air Lines racked up about $335 million in expenses during its more than three-year-plus Chapter 11 case compared to the near $200 million Delta has spent.