Delta Reaches Settlement to Resolve Claims Against Bankrupt Mesa Air Group


Delta Air Lines Inc. reached an agreement to resolve its claims for payments from regional air carrier Mesa Air Group Inc. as part of Mesa’s bankruptcy reorganization.

Delta, which filed claims for more than $67.75 million against Mesa, will have those claims reduced to $7.3 million, Mesa said yesterday in a filing in U.S. Bankruptcy Court in New York.

Mesa said there is “substantial risk” that continued litigation with Delta might not succeed and asked a bankruptcy judge to approve the settlement.

Mesa, based in Phoenix, filed for bankruptcy a year ago and is scheduled to seek court approval for a restructuring plan later this month. Under the settlement with Atlanta-based Delta, the two companies will end litigation against each other, according to the court filing.

A Delta spokesman didn’t immediately return a call seeking comment.

The case is In re: Mesa Air Group Inc., 10-bk-10018, U.S. Bankruptcy Court, Southern District of New York (Manhattan).