Access Delta Air Lines’s September 30, 2007, Form 10-Q (filed in October 2007) on the SEC Edgar Web site. Using the 10-Q, answer the following questions:
1. When and why did Delta apply for Chapter 11 bankruptcy protection?
2. When did the court approve Delta’s plan of reorganization?
3. What were the terms of the reorganization with respect to its debt and stockholders?
4. Did the company qualify for fresh-start reporting?
5. In reviewing the consolidated financial statements, how do the financial statements differ from what you would typically observe for a non-bankrupt company?
6. How much money did the reorganization cost in litigation, reorganization, and restructuring charges? Was this a material amount relative to income and assets?
7. How much debt was forgiven? Was this a material amount?
8. How was fresh-start reporting presented in the financial statements?
9. Overall, do you believe that Delta’s presentation of its bankruptcy process is informative to investors? What additional information would you like to know?