Delta Sues to Halt Payments at LAX

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Delta Air Lines Inc. will continue making lease payments and landing fees owed LAX despite a motion it made in U.S. Bankruptcy Court this week to stop making payments on some bonds, Los Angeles World Airports said Friday.


Delta’s request only pertains to bonds issued by the Regional Airport Improvement Corporation, a body that is independent of Los Angeles World Airports, the city agency that owns and operates LAX. The airport also stated in a written release that there would be no affect on Delta’s operations at LAX as a result of the bankruptcy court request.


In other news Friday, Bloomberg News reported that Delta, which filed for bankruptcy court protection last month, is in talks to obtain $300 million in letters of credit issued by Merrill Lynch & Co. as part of its credit card processing agreement with U.S. Bank. The letters of credit would free $300 million that U.S. Bank holds in reserve to repay customers when the airline cancels a flight. The move would help the beleaguered airline preserve its cash.

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