Opinion ID: 149094
Heading Depth: 3
Heading Rank: 2

Heading: Objections to TIA Claims of Owner Participants

Text: Appellants filed claims under their TIAs for tax losses that arose when the Indenture Trustees foreclosed on the aircraft, forcing Appellants to recapture prior accelerated depreciation deductions. See 26 U.S.C. § 1245(a). Delta decided to object to such tax indemnification claims brought by leveraged lease Owner Participants. Because Delta faced hundreds of such claims, totaling over $1.5 billion in aggregate, the bankruptcy court approved procedures permitting Delta to designate objections to selected sets of TIA claims, which would serve as test cases governing the disposition of similar claims. The bankruptcy court upheld the objections of Delta and the official committee to the claims of DFO, Northwestern, and AT & T. The objection to DFO's claims, designated TIA/SLV Objection 1, addressed TIAs providing that no payment would be due if a loss arose as a result of any event whereby a party to any of the Operative Documents is required to pay  SLV. The objection to Northwestern's claims, designated TIA/SLV Objection 2, addressed TIAs providing that no payment would be due if a loss arose as a result of any event whereby the Lessee pays [SLV] or an amount determined by reference [to SLV].  The objection to AT & T's claims, designated TIA/SLV Objection 5I, addressed TIAs providing that no payment would be due if a loss arose as a result of [a]ny event whereby the Lessee pays an amount equal to Stipulated Loss Value.