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DL Gets Reprieve From Credit Card Processor  
User currently offlineJetdeltamsy From United States of America, joined Nov 2000, 2987 posts, RR: 8
Posted (9 years 2 months 6 hours ago) and read 2880 times:

According to the 8-K report filed today (8/25/05), the company has been given an extension to October 31, 2005 on the existing credit card processing contract.

http://investor.delta.com/edgar.cfm

Not really great news since the extensions provides for a holdback by the processor. Note the new expiration date is just prior to the change in Bankruptcy laws.

Just delaying the inevitable.


Tired of airline bankruptcies....EA/PA/TW and finally DL.
4 replies: All unread, jump to last
 
User currently offlineAeroWesty From United States of America, joined Oct 2004, 20743 posts, RR: 62
Reply 1, posted (9 years 2 months 6 hours ago) and read 2846 times:

Quoting Jetdeltamsy (Thread starter):
Note the new expiration date is just prior to the change in Bankruptcy laws.

Interesting development, but I note the extension is for a date after, not before, the new BK laws come into effect. October 17, 2005 is when things change, this extension of the credit card contract is through October 31, 2005.



International Homo of Mystery
User currently offlinePanamair From United States of America, joined Oct 2001, 4927 posts, RR: 25
Reply 2, posted (9 years 1 month 4 weeks 1 day 1 hour ago) and read 2637 times:
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Quoting Jetdeltamsy (Thread starter):
Not really great news since the extensions provides for a holdback by the processor

The 'good' part of it is that the amount of the holdback was less than originally forecast. That amount can then be applied to any future holdback with the new processor (basically this gives DL more time to negotiate a decrease in the amount of any future holdback with the new processor).


User currently offlineJetdeltamsy From United States of America, joined Nov 2000, 2987 posts, RR: 8
Reply 3, posted (9 years 1 month 4 weeks 16 hours ago) and read 2519 times:

Quoting Panamair (Reply 2):
The 'good' part of it is that the amount of the holdback was less than originally forecast.

The way i read it, they would holdback $625 million by the end of the agreement.

That's basically a withholding of $625 million in revenue in the next 8 weeks.

I think that's pretty serious.



Tired of airline bankruptcies....EA/PA/TW and finally DL.
User currently offlinePadcrasher From , joined Dec 1969, posts, RR:
Reply 4, posted (9 years 1 month 4 weeks 16 hours ago) and read 2519 times:

The bankrutpcy law goes into effect on the 17th or 18th. I don't see the connection.

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