1. To what extent do you believe the factors contributing to the airline’s bankruptcy were beyond the control of management? To what extent do you believe past airline mismanagement may have contributed to the bankruptcy?
2. Comment on the fairness of the bankruptcy process to shareholders, lenders, employees, communities, government, and so forth. Be specific.
3. Why would lenders be willing to lend to a firm emerging from Chapter 11? How did the lenders attempt to manage their risks? Be specific.
4. In view of the substantial loss of jobs, as well as wage and benefit reductions, do you believe that firms should be allowed to reorganize in bankruptcy? Explain your answer.
5. How does Chapter 11 potentially affect adversely competitors of those firms emerging from bankruptcy? Explain your answer.

On April 30, 2007, Delta Airlines emerged from bankruptcy leaner but still an independent carrier after a 19-month reorganization during which it successfully fought off a $10 billion hostile takeover attempt by US Airways. The challenge facing Delta’s management was to convince creditors that it would become more valuable as an independent carrier than it would be as part of US Airways.