In re: Delta Airlines, Inc.
In re:...(U.S. 2d Cir., Bankruptcy Law, Contracts, Tax Law) In creditors’ appeal from a bankruptcy court’s order upholding debtor’s objections to their claims under tax indemnification agreements, the order is vacated where: 1) the bankruptcy court’s construction of “pay” as that term was used in an agreement at issue nullified debtor’s obligation to pay the “Owner Participant” under the agreement upon the occurrence most likely to call its provisions into play 150 the debtor’s insolvency; and 2) the bankruptcy court effectively nullified the agreements by stripping them of their ability to protect the Owner Participant in the event of debtor’s default.
