11/13/2008

Delta Air Lines General Counsel Ben Hirst is meeting with Minnesota legislators to discuss repayment terms on a $245 million bond issue inherited from Northwest Airlines. Delta wants to repay the bonds by 2022, but the state's Metropolitan Airports Commission could demand payment 10 years earlier if Northwest's headquarters in Eagan, Minn., is closed. "Declining Delta's request to renegotiate the bond debt wouldn't make much sense for the MAC or the state," says an editorial in the state's largest newspaper. "There's no real upside to immediate repayment of the bonds, and the MAC has the potential leverage in the negotiations to do some good for Minnesota."

Related Summaries