- Jan 15, 2004
TheStreet.com Staff Reporter
8/2/2005 2:29 PM EDT
United Airlines' parent UAL (UALAQ:OTC BB - commentary - research) is putting off filing a reorganization plan with the court overseeing its more than two-and-a-half year trip through bankruptcy.
A month ago, the nation's second-biggest airline said it would unveil the plan around Aug. 1 and set the stage for its emergence from Chapter 11 protection.
But UAL Tuesday issued a joint statement with its unsecured creditors' committee saying it would postpone the filing at the committee's request.
"Both parties agree that this approach and timing can help facilitate an even smoother exit process," the statement said.
Jean Medina, a UAL spokeswoman, said the airline had been prepared to file the plan Tuesday, but wanted to honor the unsecured creditors' request because they are important stakeholders. UAL now expects to unveil the reorganization plan in about a month.
Under Chapter 11, the airline has taken drastic measures to cut costs and restructure, wrangling $3.2 billion in concessions from its workers, battling with aircraft lessors and getting the government's pension insurer to agree to take over its traditional pension plan.
The company's stock, which is likely to be rendered worthless if and when UAL emerges from bankruptcy, gained 4 cents, or 2.8%, to $1.48