Delta, Northwest submit bankruptcy petitions

Delta, Northwest submit bankruptcy petitions    Delta Air Lines and Northwest Airlines Wednesday both filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code.
   “We had developed a plan to restructure Northwest outside of Chapter 11 and have been implementing that plan,” said Doug Steenland, Northwest’s president and chief executive officer. “Unfortunately, in addition to an uncompetitive cost structure, our efforts have been overtaken by skyrocketing fuel costs. We can no longer continue to incur sizable losses and reductions in liquidity as we attempt to complete implementation of the plan, Steenland added.
   Northwest said its unrestricted cash and short-term investments balance is $1.5 billion.
   “The action we have taken is a necessary and responsible step to preserve Delta’s value for our creditors, customers, employees, business partners and other stakeholders as we address our financial challenges and work to secure our future,” said Gerald Grinstein, Delta’s CEO.
   To help support its business during the Chapter 11 proceedings, Delta said it has obtained a commitment for $1.7 billion in debtor-in-possession financing from GE Commercial Finance and Morgan Stanley.