Delta Sues L.A., Hoping to Stop Making Bond Payments

Delta asked the U.S. Bankruptcy Court in New York to classify the payments as unsecured debt.

Delta Air Lines Inc., which filed for bankruptcy protection last month, sued the City of Los Angeles, seeking court permission to stop making payments on bonds used to finance its facilities at Los Angeles International Airport.

Delta asked the U.S. Bankruptcy Court in New York to classify the payments as unsecured debt. Bankruptcy law would then prohibit the airline from paying on the bonds while it reorganizes, according to the suit, which was filed Wednesday night.

Delta is concerned that withholding payment without a court order would force Los Angeles to try to evict it from the airport.

Delta has 43 daily departures from the airport, making it one of the airline's 10 busiest, spokesman Anthony Black said. - Bloomberg News

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