jetdeltamsy
Posts: 2688
Joined: Tue Nov 14, 2000 11:51 am

DL Gets Reprieve From Credit Card Processor

Fri Aug 26, 2005 1:16 pm

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.
 
AeroWesty
Posts: 19551
Joined: Sat Oct 30, 2004 7:37 am

RE: DL Gets Reprieve From Credit Card Processor

Fri Aug 26, 2005 1:35 pm

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
 
panamair
Posts: 3774
Joined: Fri Oct 12, 2001 2:24 am

RE: DL Gets Reprieve From Credit Card Processor

Sat Aug 27, 2005 6:25 pm

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).
 
jetdeltamsy
Posts: 2688
Joined: Tue Nov 14, 2000 11:51 am

RE: DL Gets Reprieve From Credit Card Processor

Sun Aug 28, 2005 3:17 am

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.
 
padcrasher
Posts: 1815
Joined: Tue Aug 10, 2004 6:17 am

RE: DL Gets Reprieve From Credit Card Processor

Sun Aug 28, 2005 3:23 am

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

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