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DELTA AIR LINES FILES COUNTERCLAIM SEEKING DAMAGES FROM PAN AM CREDITORS COMMITTEE

 DELTA AIR LINES FILES COUNTERCLAIM SEEKING DAMAGES
 FROM PAN AM CREDITORS COMMITTEE
 ATLANTA, April 6 /PRNewswire/ -- Delta Air Lines, Inc. (NYSE: DAL), asserting that "destructive acts" by the Pan Am Creditors Committee and its advisors caused Pan Am's proposed plan of reorganization to fail, today filed a counterclaim against the committee in U.S. Bankruptcy Court.
 Delta's counterclaim is in response to a lawsuit brought by the Creditors Committee and Pan Am's current management. The counterclaim asserts that the committee and its advisors had no intention to comply with the terms of the agreements among Delta, Pan Am and the committee. Rather, the counterclaim asserts, the committee sought, without regard to its duties to Delta and to the thousands of Pan Am employees whose jobs were at stake, to manipulate the reorganization process in order to obtain the greatest possible amount of money from Delta by forcing confirmation of a plan of reorganization, whether or not a reorganized Pan Am was viable. As an alternative, if a plan could not be confirmed, the committee sought to position itself to sue Delta, falsely claiming that Delta was responsible for the demise of Pan Am.
 The counterclaim states that the destructive acts of the committee and its advisors ultimately caused Pan Am's inability to continue operations and to reorganize. The counterclaim also states that the committee and its advisors executed a carefully crafted campaign to make it appear that Delta was responsible for Pan Am's shutdown.
 Among the committee's destructive acts, Delta said, was a November 4, 1991 letter from the committee's counsel that stated it was unlikely that Pan Am could successfully reorganize under the terms of existing agreements. The letter -- which was immediately leaked to the press by committee representatives -- destroyed the confidence of travel agents and the flying public in Pan Am and caused bookings and revenues to drop precipitously. This decline was a key factor which contributed to Pan Am's business plan becoming unworkable.
 The counterclaim seeks to hold the Creditors Committee responsible for all the losses and damages Delta incurred or may incur in connection with its efforts to assist in Pan Am's reorganization. The counterclaim also seeks punitive damages against the committee in an amount to be proved at trial.
 In its answer to the lawsuit, filed together with its counterclaim, Delta said it had lived up to all of its obligations to Pan Am and the committee, and had provided Pan Am with every penny that Delta was obligated to provide. Delta provided $115 million in debtor-in-possession financing to Pan Am, with the last payment of $10 million made on November 29. Just two days later Pan Am informed Delta that the business plan for reorganized Pan Am was not viable. Contrary to allegations of the plaintiffs, no further amounts were due to Pan Am under agreements that were actively negotiated and fully agreed to by both Pan Am and the Creditors Committee.
 "Plaintiffs' complaint is a self-serving attempt to find a way to blame Delta for Pan Am's inability to successfully reorganize," Delta said in its answer. "Pan Am succumbed to events unrelated to Delta -- including the manipulative and destructive acts of the committee."
 -0- 4/6/92
 /CONTACT: Delta Air Lines public relations, 404-715-2533/
 (DAL) CO: Delta Air Lines ST: Georgia IN: AIR SU:


BR-EA -- AT008 -- 5404 04/06/92 13:34 EDT
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Publication:PR Newswire
Date:Apr 6, 1992
Words:560
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