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DELTA'S COUNTERSUIT BASED ON DESTRUCTIVE AND MANIPULATIVE ACTS OF PAN AM CREDITORS COMMITTEE

 DELTA'S COUNTERSUIT BASED ON DESTRUCTIVE AND MANIPULATIVE ACTS
 OF PAN AM CREDITORS COMMITTEE
 ATLANTA, April 6 /PRNewswire/ -- Delta Air Lines (NYSE: DAL) provided further background today in connection with its counterclaim against the Pan Am Creditors Committee.
 In its counterclaim, Delta charges the Pan Am Creditors Committee with "destructive acts" that caused the failure of Pan Am's reorganization. Delta said that these acts negatively impacted Pan Am's business, prospects and credibility in the market, and the feasibility of the proposed plan of reorganization. The counterclaim seeks to hold the Committee liable for all losses and damages that Delta has suffered or may suffer in connection with the proposed reorganization, as well as for punitive damages, in an amount to be determined at trial.
 Delta filed the counterclaim together with its formal answer to the complaint, in which Delta stated, "Contrary to the allegations of the complaint, Pan Am and the proposed reorganization did not fail because of anything that Delta did. Rather, Pan Am succumbed to events unrelated to Delta -- including the manipulative and destructive acts of the Committee.
 "Far from causing Pan Am's shutdown as the Creditors Committee and the current Pan Am management allege, Delta made a tremendous effort to provide Pan Am with a final chance of survival," Delta said. "Not only did Delta meet or exceed all of its obligations to Pan Am and the Creditors, Delta exhibited aconcern for Pan Am and its people that went well beyond its obligations.
 "There can be no question that Delta put forth the maximum possible effort to make the successful reorganization of Pan Am a reality," Delta added. "In every area -- marketing, operations, personnel, and, of course, financially -- Delta provided tremendous support to Pan Am."
 Delta explained that its efforts were undermined by threats, deception and destructive conduct on the part of the Creditors Committee and its advisors which were designed to manipulate the reorganization process in order to advance their own purposes, without regard for the prospects of a reorganized Pan Am.
 Delta's counterclaim asserts that the aims of the Committee and its advisors were two-fold. First, they sought to achieve by any means temporary "administrative solvency" for Pan Am on the day scheduled for confirmation of the Plan of Reorganization. Such administrative solvency in conjunction with confirmation of the plan would have allowed those members of the Committee who also were administrative creditors (also known as "post-petition" creditors) of Pan Am to receive payment of substantially all of their claims, whether or not reorganized Pan Am had a real chance to survive. Confirmation of the plan also would have provided the unsecured creditors with a possibility of some value in their equity interest in the new Pan Am, either through further manipulation of Delta or other improper actions.
 Second, as an alternative approach, the Committee and its advisors sought to position themselves for litigation against Delta by developing a well-crafted campaign designed to show that any failure of Pan Am to reorganize was attributable to Delta. The basis of this alternative approach was to create a new asset for the estate (which could be carved up by the creditors) in the form of a claim against Delta which would be pursued if the plan of reorganization was not confirmed for any reason. The Committee and its advisors never intended to honor their agreements with Delta to develop a truly viable plan of reorganization, but instead pursued these alternative goals designed solely to obtain more money from Delta without regard to the viability of a plan of reorganization.
 The counterclaim asserts that the manipulative and disruptive conduct of the Committee and its advisors included the following:
 -- Efforts to undermine, isolate and, ultimately, remove
 Pan Am's senior management beginning in or prior to July
 and August of 1991;
 -- Threats of unfounded litigation against Delta if Delta
 did not increase its interim financing for Pan Am beyond
 the levels agreed to by all parties, including the
 Committee;
 -- Threats to attempt to interfere improperly with the
 closing of Delta's purchase of assets from Pan Am;
 -- Threats to file pleadings and court papers in bad faith
 in support of another party's attempt to foreclose on
 Pan Am receivables, even though such action could have
 resulted in the immediate shutdown of Pan Am;
 -- Demands that Delta renegotiate the October 22, 1991
 Letter Agreement providing additional financing of Pan
 Am (that was negotiated, and agreed to, by the
 Committee) -- said demands commencing within eight days
 after the agreement was executed and lauded by the
 Committee counsel.
 -- The intentional leaking to the press of the November 4,
 1991 letter written by the Committee's counsel on his
 own behalf and on behalf of the Committee, which had the
 immediate impact of roiling Pan Am's labor negotiations,
 destroying the confidence of travel agents and the
 flying public in Pan Am, and causing Pan Am's revenues
 and bookings to drop precipitously; and
 -- Numerous other acts and conduct which seriously
 diminished Pan Am's revenues, bookings and prospects and
 the prospects for a successful reorganization.
 Delta said: "In their zeal to show that Delta would be responsible for any failure of Pan Am to reorganize -- and in particular through the letter of the Committee's counsel that was leaked to the press in early November -- the Committee's advisors went too far and by their actions insured that Pan Am could not survive.
 "Though ultimately the proposed reorganization was not successful, Delta takes great pride in the fact that approximately 7,800 former Pan Am personnel have stable, productive jobs with Delta," Delta added. "Without the interest shown by Delta in the people of Pan Am, thousands more individuals would now be unemployed, since no other party involved in the negotiations for Pan Am assets was willing to provide the level of employment offered by Delta."
 Delta said it will defend itself vigorously against the assertions of Pan Am's current management and the Creditors Committee, while aggressively pursuing its claim against the Committee.
 -0- 4/6/92
 /CONTACT: Delta Air Lines public relations, 404-715-2533/
 (DAL) CO: Delta Air Lines, Inc.; Pan Am Corporation ST: Georgia IN: AIR SU:


BR -- AT010 -- 5413 04/06/92 13:52 EDT
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Date:Apr 6, 1992
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