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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 Motive Nage ana seeaaaea tvr Paapage Pae I n kDi �.pl. a AutMiizing the Finance Director [o =P, a e eo Bankruptcy Claim Against Northcreat Aiilinea.