- Dec 20, 2002
- Total Time
Sorry Whitecloud, looks like the bad news ran out on this one. Keep hoping for bad things though, there's still time!United's bankruptcy exit gets boost
Judge endorses key part of airline's plan, financing
By Dave Carpenter, Associated Press
October 22, 2005
CHICAGO - United Airlines' bid to come out of bankruptcy in early 2006 took an important step forward Friday when a judge approved the disclosure statement that is a key part of its exit plan.
U.S. Bankruptcy Judge Eugene Wedoff said at the monthly bankruptcy hearing for UAL Corp., United's holding company, that he signed off on the statement Friday morning after the biggest objections to it had been withdrawn.
[FONT=arial, helvetica, sans-serif]Advertisement[/FONT]GetAd('31', false, 'c1', 250, 250, 'BUSINESS_ARTICLE_DETAIL', '');http://ad.doubleclick.net/click;h=v5|3319|0|0|%2a|j;21904996;0-0;1;8700227;237-250|250;12773480|12791376|1;;~sscs=%3fhttp://www.frontierairlines.com/?cid=RMNBAThe disclosure statement details the airline's plans for emerging from bankruptcy and outlines how creditors will be paid.
The Pension Benefit Guaranty Corp., the federal corporation that insures pension plans, had objected to the plan's stipulation that requires a five-year waiting period before it can sell the UAL stock it is to receive as part of this year's settlement with United for terminating its employee pensions.
The pension agency withdrew its objection, as did others, after United agreed this week to make changes to the disclosure statement to accommodate those concerns.
Wedoff on Friday also formally approved United's exit financing, a $3 billion all-debt package led by JPMorgan Chase & Co. and Citigroup Inc.
Chief Financial Officer Jake Brace told reporters afterward that the Elk Grove Village, Ill.-based company still has work to do to meet its goal of emerging from bankruptcy Feb. 1, including resolving remaining issues with the creditors committee, the PBGC and others, and finalizing aircraft financing.
However, he said: "We're on track to exit in February."
The nation's No. 2 airline and its competitors alike will benefit from the recent decline in fuel prices, with oil dipping below $60 a barrel Friday for the first time in three months. Brace welcomed the price drop but said he's "not going to do a victory lap" just yet because United's business plan for after bankruptcy is based on prices averaging $50 a barrel starting next year.
Does it give you a "woody" to fantasize about UAL's demise?WhiteCloud said:February 2006.
The UAL employees are a good group of people. They'll be able to find other jobs.koko nw said:Does it give you a "woody" to fantasize about UAL's demise?
Frankly it's unhealthy and way un-cool to wish this much bad karma towards your fellow human beings trying to provide for their families by wishing for their downfall.
Finally a post with some reasonable commentary on the subject. In bankruptcy UAL has taken your pensions and many of the contractual gains you've made over many, many years. They have jerked around their own retirees and contractors and, worst of all in my book, have replaced union regional flying with non-union flying on their own property without a peep from the union UAL pilots. We've seen what the consequences of having UAL languish in bankruptcy for many years are for their own employees and the industry as a whole and it isn't pretty. Bankruptcy has become the normal operating procedure for conducting UAL business. If, by some chance, UAL makes it out of bankruptcy they're going to have one heck of a time competing with the airlines that have just entered the process.UAL78 said:If you're a true supply/demand kind of guy, having 6000+ current and qualified pilots suddenly looking for jobs doesn't bode well for the others in the job market, or the hope of better compensation for those with jobs already.
Be careful what you wish for. The only thing that you can be guaranteed of is that the law of unintended consequences will rear it's ugly head- and it's usually never good.
I wish I had a buck for everybody in the last three years that predicted this and that for UAL, I probably could have retired early with the pension I'd always counted on.
Time will tell, bro.