In a sign that merger talks with Northwest Airlines Corp. have stalled, top executives of Delta Air Lines Inc. issued a memo to employees saying that no “potential transaction meets all our principles,” the Wall Street Journal reported today. The memo comes as executives at the two airlines wait for their pilots to reach an accord among themselves on seniority — an accord needed before a merger can move forward. In its memo, issued yesterday, Delta said that seniority for all its employees is one priority it would consider in any merger. Delta also cited other priorities, such as keeping its Atlanta headquarters. It added the airline will continue to focus on its “stand-alone plan” until all “these conditions are met.”

The court overseeing First Magnus Financial Corp.’s chapter 11 proceedings approved the bankrupt mortgage lender’s liquidation plan and rejected a bid to have the case converted to a chapter 7 liquidation, Bankruptcy Law360 reported on Friday. Bankruptcy Judge James M. Marlar signed off on a memorandum decision confirming the Tucson, Ariz.-based mortgage company’s second amended plan and denying a motion from creditor WNS North America Inc. to convert the case to a chapter 7 liquidation. Under the plan, First Magnus’ management would be replaced by an advisory board, made up of impartial representatives from the unsecured creditors’ class and charged with overseeing the operation of two trusts.