Delta Synopsis
MBA/530 Human Capital Development
R. Paul Thomlinson Ph.D.
celestial latitude 11, 2007
Delta Airlines faced a similar issue that Riordan is facing: backing their future. Delta filed for bankruptcy protection in 2005 in part to acclivitous fuel costs, growing debt, and its pension obligations to retirees. U.S. Airways, looking to acquire the a good deal larger Delta, also wanted to use the bankruptcy as an excuse to cut thousands of jobs and slash costs. According to CNNMoney, Deltas management did not support the proposal, saying they inventionned to remain independent (Isidore, 2006). exactly there were other alternatives. Riordan has their IPO whereas Delta made a in the public eye(predicate) appeal to creditors for financial backing.
Delta countered with a strong appeal to its creditors in hopes they would accept part of the airlines post-bankruptcy operation. Chris Isidore says in occupancy Week Online, U.S. Airways Chief Executive Doug Parker arranged a financial support commitment from Citigroup to provide $7.2 billion to fund the deal (2006). give thanks to the deal between Citigroup and Delta, the bankruptcy court approved Deltas reorganization plan and eventu ally US Airways pulled its offer from the table.
Likewise, Riordan is hypersensitised to another company looking to take advantage of Riordans need of capital for future growth and this possibility has besides to be addressed.
Delta was successful in fending off U.S. Airways takeover repayable to the support of a committee of unsecured creditors that will mystify Deltas new owners as well as all of Deltas employees (Bailey, 2007). Key creditors showed confidence in the proposed business plan rather than accept the US Airways offer of cash and stemma (Dade & Prada, 2007). Deltas CEO, Gerald Grinstein, was able to convince the creditors and employees that the changes would keep the company total and have financial benefits. This is something that makes solid use of communication...If you want to get out a full essay, order it on our website: Ordercustompaper.com
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