03:36 PM

Cisco Claims It's Owed $20 Million From Delta Air Lines

Delta is disputing Cisco's claim, arguing that it has been charged twice for the same item.

Computer hardware vendor Cisco Systems says bankrupt Delta Air Lines owes it more than $20 million on unpaid equipment leases, according to court records.

Cisco has filed two separate claims against Delta totaling more than $10 million each in an effort to obtain payment for unspecified technology leased to the airline, according to documents filed in February in U.S. Bankruptcy Court for the Southern District of New York.

The court records indicate that Delta is disputing Cisco's claim, arguing that the amounts in question are for the same item and that it only owes $10 million. Cisco counters in its filing that "these are not duplicative claims."

Delta has said it plans to emerge from bankruptcy in April. Court documents in the case have provided a series of rare glimpses into the negotiations between a large enterprise and its IT vendors.

One filing revealed a demand for payment of $37,000 from Unisys for building a system to help Delta keep track of dead bodies shipped on its aircraft. Another showed that SAP agreed to a 27% cut in the cost of enterprise resource planning software sold to the airline, which originally filed for Chapter 11 protection in 2005.

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