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IN RE DELTA AIR LINES

Bankruptcy No. 05 B 17923(ASH). Adversary No. 06-1259A.

359 B.R. 454 (2006)

In re DELTA AIR LINES, et al., Debtors. Delta Air Lines, Inc., et al., Plaintiffs, v. David L. Bibb, Acting Administrator of General Services Administration, General Services Administration, and United States of America, Defendants.

United States Bankruptcy Court, S.D. New York.

November 3, 2006.

Attorney(s) appearing for the Case

Davis Polk & Wardwell, By Marshall Scott Huebner, Benjamin S. Kaminetzky, New York, NY, J. Scott McClain, Assistant General Counsel, Delta Air Lines, Inc. Law Department, Atlanta, GA, Attorneys for Debtors/Plaintiffs.

U.S. Attorney's Office Southern District of New York, By Pierre G. Armand, Assistant U.S. Attorney, New York, NY, Attorneys for Defendants.

DECISION ON RIGHT TO OFFSET

ADLAI S. HARDIN, JR., Bankruptcy Judge.

Delta Air Lines, Inc. ("Delta" or the "Debtor") commenced this adversary proceeding for declaratory judgment that the Government Services Administration (the "Government") is precluded from deducting amounts the Government "overpaid" to Delta for services purchased pre-petition from amounts which the Government owes to Delta for services purchased post-petition. It is Delta's position...

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