Delta Air Lines bondholders to back US Air bid

NEW YORK: Some bondholders of bankrupt airline Delta Air Lines have begun organising an informal group to support US Airways Group’s $8.8bn takeover offer, the Wall Street Journal reported on its website on Wednesday.

That could help the bid overcome initial opposition from the Atlanta carrier’s management and scepticism from some of its larger creditors, the paper said. In conference calls yesterday with Deutsche Bank and Lehman Brothers Holdings, bondholders were urged to band together to pressure Delta to fully consider the bid from US Airways, the paper said.

The effort by both banks, which are Delta creditors, is aimed at creating a second group of creditors with some say in the airline’s restructuring, it said.