8/19/2004

ATLANTA (AP) - Delta Air Lines is considering exchanging some of its $20 billion debt, possibly for equity in the company, as part of a larger effort to avoid bankruptcy.

The company's proposal involves certain equity certificates issued by investor groups that lease aircraft to the airline to assist in financing the planes' cost. It is asking the holders of those certificates to remove any restrictions that would prevent Delta from buying or holding the securities.

The nation's third-largest airline said that if it is successful, it will have more flexibility in restructuring its debt, and therefore a greater likelihood of avoiding a Chapter 11 filing.