Propsfullfwd
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Creditors move to seize UA planes; judge intervenes
A group of financiers, which controls approximately one-third of United Airlines' (UA) fleet, tried Wednesday to seize as many as 14 of the carriers' aircraft. U.S. Bankruptcy Judge Eugene Wedoff issued a temporary restraining order Friday to prevent the group from repossessing the planes. Another hearing on the matter is set for Dec. 15.
The Wall Street Journal reported that UA has filed a motion with the bankruptcy court to terminate all union contracts if it does not get an additional $725 million in wage and benefit concessions. The airline also asked the bankruptcy court to terminate its employee pension plans and allow it to replace them with less costly retirement plans.
UA has cut $5 billion in annual costs since it filed for Chapter 11 bankruptcy-court protection two years ago. The airline said it needs to cut another $2 billion in order to emerge from bankruptcy next year.
A group of financiers, which controls approximately one-third of United Airlines' (UA) fleet, tried Wednesday to seize as many as 14 of the carriers' aircraft. U.S. Bankruptcy Judge Eugene Wedoff issued a temporary restraining order Friday to prevent the group from repossessing the planes. Another hearing on the matter is set for Dec. 15.
The Wall Street Journal reported that UA has filed a motion with the bankruptcy court to terminate all union contracts if it does not get an additional $725 million in wage and benefit concessions. The airline also asked the bankruptcy court to terminate its employee pension plans and allow it to replace them with less costly retirement plans.
UA has cut $5 billion in annual costs since it filed for Chapter 11 bankruptcy-court protection two years ago. The airline said it needs to cut another $2 billion in order to emerge from bankruptcy next year.
