The Richmond-headquartered company's unsecured creditors
first objected to the proposed debtor-in-possession funding, which will be given by a syndicate of lenders.
Final restructuring documents were sent to unsecured creditors
on Wednesday and a meeting with bankers is scheduled to take place in Dubai on May 15, two sources familiar with the negotiations said, speaking on condition of anonymity as the information isn't public.
A creditors' committee, which represents the interests of all of the debtor's unsecured creditors
, usually consists of the debtor's largest unsecured creditors
But an attorney for the committee for unsecured creditors
, Donald Detweiler, told the judge that the sale appears to benefit only the two lenders.
Delta Air Lines should "consider methodically, proactively and fairly strategic alternatives to its standalone Chapter 11 plan," a group of "unofficial" unsecured creditors
said last week in a statement.
The plan states that unsecured creditors
with claims of less than USD50,000 would receive 10%, up to USD5,000, while unsecured creditors
with claims larger than USD50,000 will receive stock in the merged airline, The Associated Press reported.
In a Chapter 7 liquidation, after the secured creditors are paid, unsecured creditors
are paid strictly according to their Bankruptcy Code Section 507 priority class.
Creditors want to have the ability to challenge any plan that doesn't pay unsecured creditors
R3 research has consistently shown that unsecured creditors
receive minimal returns from insolvent debtors.
The next largest unsecured creditors
are NHL Players Association ($3,880,000) and NHL Enterprises ($3,163,000).
Alexander's also announced that it had entered into an agreement with the Official Committee of Unsecured Creditors
on terms for an extension of up to March 31, for the final payment of approximately $28 million due general unsecured creditors
under the company's plan of reorganization.