Delta Air Lines Inc., in its effort to thwart US Airways Group's $8.4 billion hostile merger bid, filed a sweeping bankruptcy reorganization plan this morning that values the company at $9.4-$12 billion. This is down from the $12-$14 billion range it reached a few weeks ago. Delta hopes creditors will prefer its plan that values the airline at more than US Airways' offer. US Airways would consider increasing its offer if Delta can substantiate its case, according to "a person familiar with the US Airways strategy." Delta's plan won't offer as much cash as the USA deal, putting most of its value to creditors in equity; under the USA offer Delta claimholders would collectively get 78.5m shares and $4b in cash.
• Sources: WSJ, MarketWatch
• Related commentary: Delta Will Go To $0, US Airways Surprises Delta With Hostile Bid
• Potentially impacted stocks and ETFs: US Airways Group Inc. (LCC). Competitors: AMR Corp. (AMR), Continental Airlines Corp. (CAL), Southwest Airlines Co. (LUV), JetBlue Airways Corp. (JBLU), UAL Corp. (UAUA), AirTran Holdings Inc. (AAI)
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