US Airways drops bid for Delta

ATLANTA (AP) – US Airways Group Inc. dropped its $9.8 billion hostile bid for Delta Air Lines Inc. on Wednesday after a key group of the bankrupt carrier’s creditors said Delta would be better off emerging from Chapter 11 on its own.

With the dual decisions, Atlanta-based Delta cleared a big hurdle in its effort to exit bankruptcy by the middle of this year as a stand-alone company.

But it isn’t out of the woods yet. Smaller creditors could ultimately vote not to approve Delta’s reorganization plan, and some have already filed objections to the disclosure statement to the Delta plan.

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