Troubled Delta Air Lines has revealed it does not have sufficient cash reserves for its credit card processing company, heightening fears it will plunged into Chapter 11 bankruptcy.
The carrier is locked in talks with the company which wants “a substantial cash reserve” up front to handle Visa and MasterCard transactions.
Should talks break down, Delta would be unable to accept Visa or MasterCard payments.
Following the disclosure, the third-largest domestic airline’s shares – which lost more than half their value in the last month – dropped further as Chapter 11 bankruptcy loomed ever closer.
The further blow follows news of recent senior executives leaving Delta, including its treasurer, chief financial officer and Washington lobbyist.
