Government required to play by the rules in airline bankruptcy

In re Delta Air Lines (Delta Air Lines v. General Services Administration)(Bankr. S.D.N.Y. Nov. 3, 2006).  The Bankruptcy Code’s automatic stay (11 U.S.C. 362) prohibits a creditor from deducting its pre-petition claims against the debtor from its post-petition liabilities to the debtor.  The automatic stay helps ensure that all creditors are treated equally in the bankruptcy case. In Delta’s bankruptcy … More Government required to play by the rules in airline bankruptcy