Delta granted interim OK to use Blackstone as financial adviser

By Caroline Salls

Pittsburgh, Sept. 19 - Delta Air Lines, Inc. obtained interim approval to use The Blackstone Group LP as the financial adviser in its Chapter 11 bankruptcy case, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The financial adviser's duties will include:

* Assisting in the evaluation of the company's businesses and prospects;

* Assisting in the development of a long-term business plan and related financial projections;

* Assisting in the development of financial data and presentations to the board of directors, management and creditors;

* Analyzing the financial liquidity and evaluating alternatives to improve it;

* Analyzing various restructuring scenarios and their potential impact on stakeholder recoveries;

* Providing strategic advice on restructuring or refinancing existing or potential debt obligations or other claims;

* Evaluating the debt capacity and alternative capital structures;

* Participating in negotiations among the company and its creditors, suppliers, lessors, pilots and other interested parties;

* Valuing securities offered in connection with a restructuring;

* Advising the company and negotiating with lenders on potential waivers or amendments of various credit facilities; and

* Assisting in arranging debtor-in-possession financing.

A final hearing is scheduled for Oct. 6.

Delta, an Atlanta-based airline, filed for bankruptcy on Wednesday. Its Chapter 11 case number is 05-17923.

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