HomeMy WebLinkAbout2006-11-27 07-031 ORDER41NCIL ACTION
Date: November 27, 2006 Item No. 8 33i
Item/Subject: ORDER, Authorizing the Finance Director to Accept a Settlement for an
Unsecured Bankruptcy Claim Against Delta Airlines.
Responsible Department: Airport
Commentary: Delta Airlines, an aidine serving Bangor International Airport, filed for
bankruptcy on September 14, 2005. Delta Airlines owes the airport $90,517.43. Recently, the
Qty has recehved a settlement offer from a company that purchases liabilities related to
companies in bankruptcy. This offer is for $.40 on the dollar. This offer compares favorably
with the amounts received by the CM in other bankruptcy actions. In a separate situation
Involving Northwest Airlines, the City received offers from several companies and there is a
potential that we will receive more than one offer in this situation. Such offers, however, are
generally time limited. As a result, staff requested that the Finance Committee authorize the
Finance Director to accept the most advantageous settlement offer taking Into account the
amount proposed and the terms and conditions of the offer. The Finance Committee
recommends this approach to the full Council.
The attached order would authorize the Finance Director to accept the settlement offer deemed
most advantageous to the City for the Airporrs bankruptcy claim against Delta AMInes, subject
to the condition that such settlement be equal to or better than $.40 cents on the dollar and
that the terms and conditions of the settlement be approved by the City Solicitor.
Rebecca L. Hupp
Department Head
Managees Comments:
Recommend approval.
City Manaaer
Associated Information:
Legal Approval:
C Solicitor
Introduced for
X Passage
_ First Reading
Referral
07 031
Assignedto Co ilor Alley ew her 27. 2006
l �
CITY OF BANGOR
(TIME.) ORDER, Authorizing the Finance Director to Accept a Settlement for an
Unsecured Bankruptcy Claim Against Delta Airlines.
BE R ORDERED BY THE CRY COUNCIL OF THE CITY OF BANGOR THAT
the Finance Director is hereby authorized to accept the settlement offer deemed most
advantageous to the City for the Airport's bankruptcy claim against Delta Airlines,
subject to the condition that such settlement be equal to or better than $.90 cents on
the dollar and that the terms and conditions of the settlement be approved by the City
Solicitor.
IN CITY COUNCIL
November 22. 2006
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Bankruptcy Claim Against Northcreat Aiilinea.