Latest news with #PayrollSupportProgram
Yahoo
a day ago
- Business
- Yahoo
Delta Air Lines, Inc. (DAL) Agrees to $8.1 Million Settlement of Federal COVID-19 Fund Misuse Case
Trading at a low P/E multiple with potential upside for investors, Delta Air Lines, Inc. (NYSE:DAL) is among the . Pixabay/Public Domain On July 16, 2025, it was announced by the U.S. Justice Department that Delta Air Lines, Inc. (NYSE:DAL) misused federal COVID-19 relief funds, as a result of which the company will pay $8.1 million in a settlement. The Payroll Support Program was created under the 2020 CARES Act to support airlines with the retention of workers during the pandemic, ensuring that the airlines could resume operations once the pandemic eases. The state claims that Delta Air Lines, Inc. (NYSE:DAL) violated the program's terms by exceeding compensation limits for some executives in March 2020 and April 2023. However, Delta Air Lines, Inc. (NYSE:DAL) has denied the claims, labeling the whole issue as a 'technical disagreement.' Thus, to avoid costly litigation, the company has agreed to the $8.1 million settlement. Delta Air Lines, Inc. (NYSE:DAL), operating in the U.S. and internationally, offers scheduled air transportation services for passengers and cargo. It is on the list of cheap transportation stocks. While we acknowledge the potential of DAL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: Billionaire Kerr Neilson's 10 Stock Picks with Huge Upside Potential and . Disclosure: None.
Yahoo
3 days ago
- Business
- Yahoo
Delta Air Lines to pay $8.1 million in settlement. What did the Georgia company do?
A major Georgia-based company recently settled out of federal court for a COVID-era program. Delta Air Lines allegedly violated the False Claims Act in connection to the U.S. Treasury Department's Payroll Support Program, according to a Tuesday news release from the U.S. Justice Department. Here's what we know: What is the Payroll Support Program? The PSP was reportedly stabbed in March 2020 under the Coronavirus Aid, Relief and Economic Security Act to provide payroll support to passenger and cargo air carriers and certain contractors for the continuation of payment of employee wages, salaries, and benefits. What was Delta charged with? Air carriers participating in the program were required to enter into written agreements with the treasury that imposed certain conditions in exchange for the receipt of PSP funds. Among other requirements were limitations on the amount of compensation that participants could pay to certain corporate officers and employees earning annual compensation in excess of $425,000. From 2020 to 2023, Delta allegedly awarded some corporate officers and employees compensation exceeding the limits, and violated the False Claims Act by inaccurately certifying compliance with the requirements as well as not notifying the treasure of the breach. How much was Delta Air Lines required to pay? Delta agreed to pay $8.1 million to resolve the allegations. The justice department said this was a coordinated effort between multiple divisions of their agency, the U.S. Attorney's Office for the Northern District of Georgia with help from the treasury. Where is the Delta Air Lines headquarters? Delta's global headquarters are located in Atlanta at 1030 Delta Blvd. just outside the Hartsfield-Jackson Atlanta International Airport. Miguel Legoas is a Deep South Connect Team Reporter for Gannett/USA Today. Find him on Instagram @miguelegoas and email at mlegoas@ This article originally appeared on Savannah Morning News: Delta Air Lines from Georgia to pay $8.1 settlement for payroll claims Solve the daily Crossword
Yahoo
05-06-2025
- Business
- Yahoo
Delta Air Lines Plans Bond Sale to Repay Pandemic Payroll Loan
(Bloomberg) -- Delta Air Lines Inc. is planning to sell investment-grade bonds Thursday to help repay a government loan it took out during the pandemic to pay employees. ICE Moves to DNA-Test Families Targeted for Deportation with New Contract The Global Struggle to Build Safer Cars NYC Residents Want Safer Streets, Cheaper Housing, Survey Says The Buffalo Architect Fighting for Women in Design US Housing Agency Vulnerable to Fraud After DOGE Cuts, Documents Warn The airline is marketing three-year and five-year notes, according to a person with knowledge of the deal. Initial price discussions for the longer portion are in the area of 1.6 percentage point over Treasuries, the person said, asking not to be identified disclosing private details. The bonds will help the Atlanta-based carrier repay the US government for a loan it took out in 2020 through a program that was established through the CARES Act and that allowed airlines, whose sales plummeted during the pandemic, to borrow money to pay their workers. The $1.6 billion loan, which is due in 2030, was the largest of the three that Delta received through the Payroll Support Program, according to a filing. The facility had been accumulating at a 1% interest rate until April, when it switched to a floating rate structure with an interest rate of two percentage points above the Secured Overnight Financing Rate. The remaining loans Delta has from the government mature a year later than the one it's refinancing now, and their interest rate won't change until next year, according to Fitch Ratings. Delta's bond sale is among four in the US high-grade market Thursday, with others including Target Corp, First National of Nebraska and the homebuilding company Toll Brothers. Companies are seeking to meet their borrowing needs while funding levels remain attractive — high-grade yields dropped to their lowest since April on Wednesday. Delta's notes are expected to be rated Baa2 by Moody's Ratings and BBB- by both S&P Global Ratings and Fitch Ratings. Barclays Plc, JPMorgan Chase & Co., Morgan Stanley, U.S. Bancorp, and Wells Fargo & Co. are bookrunners for the transaction. Issuer Profile Debt distribution: DAL US Equity DDIS Capital structure: DAL US Equity CAST Related securities: DAL US Equity RELS Ratings history: DAL US Equity CRPR This story was produced with the assistance of Bloomberg Automation --With assistance from Brian Smith. (Adds context on loan program and Thursday's bond sales throughout.) Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Is Elon Musk's Political Capital Spent? Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To ©2025 Bloomberg L.P. Sign in to access your portfolio
Yahoo
05-06-2025
- Business
- Yahoo
Delta Air Lines Plans Bond Sale to Repay Pandemic Payroll Loan
(Bloomberg) -- Delta Air Lines Inc. is planning to sell investment-grade bonds Thursday to help repay a government loan it took out during the pandemic to pay employees. ICE Moves to DNA-Test Families Targeted for Deportation with New Contract The Global Struggle to Build Safer Cars NYC Residents Want Safer Streets, Cheaper Housing, Survey Says The Buffalo Architect Fighting for Women in Design US Housing Agency Vulnerable to Fraud After DOGE Cuts, Documents Warn The airline is marketing three-year and five-year notes, according to a person with knowledge of the deal. Initial price discussions for the longer portion are in the area of 1.6 percentage point over Treasuries, the person said, asking not to be identified disclosing private details. The bonds will help the Atlanta-based carrier repay the US government for a loan it took out in 2020 through a program that was established through the CARES Act and that allowed airlines, whose sales plummeted during the pandemic, to borrow money to pay their workers. The $1.6 billion loan, which is due in 2030, was the largest of the three that Delta received through the Payroll Support Program, according to a filing. The facility had been accumulating at a 1% interest rate until April, when it switched to a floating rate structure with an interest rate of two percentage points above the Secured Overnight Financing Rate. The remaining loans Delta has from the government mature a year later than the one it's refinancing now, and their interest rate won't change until next year, according to Fitch Ratings. Delta's bond sale is among four in the US high-grade market Thursday, with others including Target Corp, First National of Nebraska and the homebuilding company Toll Brothers. Companies are seeking to meet their borrowing needs while funding levels remain attractive — high-grade yields dropped to their lowest since April on Wednesday. Delta's notes are expected to be rated Baa2 by Moody's Ratings and BBB- by both S&P Global Ratings and Fitch Ratings. Barclays Plc, JPMorgan Chase & Co., Morgan Stanley, U.S. Bancorp, and Wells Fargo & Co. are bookrunners for the transaction. Issuer Profile Debt distribution: DAL US Equity DDIS Capital structure: DAL US Equity CAST Related securities: DAL US Equity RELS Ratings history: DAL US Equity CRPR This story was produced with the assistance of Bloomberg Automation --With assistance from Brian Smith. (Adds context on loan program and Thursday's bond sales throughout.) Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Is Elon Musk's Political Capital Spent? Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To ©2025 Bloomberg L.P.
