Delta Air Lines

(DAL) - Get Report

restructured its investment in

priceline.com

(PCLN)

, in a deal that also entitles the airline to raise its stake in the "name-your-own-price" Internet site.

Under the agreement, priceline, which is based in Norwalk, Conn., will also reduce the amount of preferred stock the company has outstanding by $280 million.

Delta holds 6 million shares of priceline's convertible preferred stock. The Atlanta-based airline will exchange that stock for 80,000 new priceline preferred shares. The new shares have a liquidation preference of $80 million. Delta will also receive warrants to purchase about 27 million priceline shares for $2.97 each, the closing price on Feb. 6.

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On Dec. 28, priceline announced the

resignation of founder and chairman Jay Walker from its board, soon after the company set plans to cut 11%

of its workforce.

Shares of Delta were lately up 10 cents, or 0.2%, to $45.80 on the

New York Stock Exchange

, while priceline recently gained 19 cents, or 7%, to $2.88 in

Nasdaq

trading.