UAL convertible notes...

[GuppyPuppy]

Does anyone know if furloughed pilots, upon returning, will receive any of the convertible notes from UAL?

Does the pilot have to be on the list of active pilots at the time of exiting of bankruptcy to get the notes?

What is the formula for the allocation of convertible notes to the pilots? Seniority? Time at company? Equal allocation to all on the list?

Thanks for any information. I expect a recall sometime next year. Not sure what I will do, but am leaning towards bypassing.

GP

 

[banned username 1]

They are still (the MEC) trying to decide between two formulas for payout of the notes. Not to get into a giant heated debate with readers of this thread, we need to reiterate just what that note was designed to do. It was to try to mitigate the impact of turning over the A plan to the PBGC on pilots who would not have many years left to recoup through the "sweetened" B plan or a 401k.

There are two plans under consideration and better minds than I have attempted to explain it with graphs and we still look like dogs looking at a TV set.

I believe that under either plan, furloughees do not receive any part of the convertable note allocation. However, if memory serves me correctly, shares of stock are to be distributed as a "profit sharing" type of vehicle and all pilots regardless of whether they are on the property or not, are scheduled to receive that.