Disney may lose $119M if Delta files Ch. 11

BURBANK, Calif. -- According to its quarterly Securities and Exchange Commission (SEC) filing, the Walt Disney Co. may be forced to write off $119 million for lease investments in aircraft used by Delta Air Lines if Delta files for Chapter 11 bankruptcy.

Delta's May 10 SEC filing warned that the company may be forced to file Chapter 11 if it is unable to regain profitability, a competitive cost structure and access to capital markets.

Disney wrote off $114 million in the first quarter of 2003 for its aircraft lease investment with United Airlines after it filed for Chapter 11 bankruptcy protection.

To contact reporter David Cogswell, send e-mail to [email protected].

JDS Travel News JDS Viewpoints JDS Africa/MI