There were rumors of Delta being bought out during their bankruptcy...primarily by US Air,
but Delta did not want to go this route. Instead they tossed tons of their employees while
they cut pensions and canceled labor contracts under the protection of Chapter 11. They
have dramatically increased their international flights by 15% of their total flights
where they don't have to worry about value airlines competing with them nearly as much,
while cutting their domestic flights back, a little, at the same time.

They have now turned to a projected pre-tax profit of $815 million this year after they
posted a 1Q loss of only $130 mill vs. over $2 bill in last year's 1Q. They have also
obtained $2.5 billion in financing to get them out of bankruptcy. No small feat.

They started passing out "when issued' shares on Monday to their creditors and employees
who got screwed over when they filed chapter 11. USA today has some of the best coverage
that I have seen of Delta's most recent moves including some good details of who was
getting how much of these shares. These shares entitle those who have them in hand now to
claim their stock when it drops on the market today (May 3). These shares were expected
to trade at about $15 when DAL is relisted, as quoted from Prudential's airlines analyst,
and he recommended selling them too, but there are many articles that indicate it's value
will really take-off in this IPO of their new shares. Last i saw though they had dropped
2.2% to $20.46. I have also been watching DALIV, which isn't valid anymore and dropped
down from $20.50 to $19.25 on Tuesday (5/1) but is now back up at $20.40 after Wednesday's
trading.

A big stand up salute is also deserved for Delta's CEO Gerald Grinstein who is leaving now
that he has turned his company back to profitability and turned down any new shares and
any other bonuses or compensation he would be given and instead wants it put into programs
for scholarships and emergency hardship assistance for Delta employees, families and
retirees. These bonuses could add up to $10 million over the next 3 years.

Yeap, that explains then.. thanks a bunch Cfawal.

Here's the follow up- quoted from Marketwatch.com - looks like DALRQ owners are shit out
of luck

"As part of Monday's move, existing shares of Delta stock will be cancelled and current
shareholders will not receive any compensation for their positions, the airline said.
Shares of the new stock will start trading on the New York Stock Exchange on Thursday
under the DAL symbol and be issued to creditors and some employees. A new logo will appear
on more than 900 Delta and Delta Connection aircraft by the end of the year. "

Delta Air Lines exits bankruptcy
No. 3 domestic carrier plans to list shares on NYSE starting Thursday
By Aude Lagorce & Padraic Cassidy, MarketWatch
Last Update: 12:00 PM ET Apr 30, 2007

two: No, I do not own it... I just saw the news this morning while doing my homework and I
remember in one of the Cramer shows to follow Delta as a barometer for other airline
plays.

Cfawal: Yeap, I think that you nail it on my question.

Not super knowledgeable in this area but... Delta will issue stock under the Ticker DAL
on May 3 according to press releases this morning (there's a number of articles out
there). There will be no conversion of the diluted shares which, i believe, is why they
have tumbled. My follow up question, though, is what happens to these diluted shares? Do
the owners now own shares of nothing?

Again, it does not mean buying DALRQ now will make you a ton as Delta exits bankruptcy

Ok, let me try again. Looking at the stock, What is different about Delta Air stock now
that it cleared bankrupcy compared to last week? Does this means that everybody that was
expecting the stock to shattered was wrong?

Last edited on: 04-30-2007 01:37 pm

what's the question?

I'm dazed and confused...

Delta Air announced that they left bankrupcy. Were not they supposed to be diluted or
something??