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United losing 8 747s to creditors?

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Well-known member
Jul 1, 2004
An instructor at the United Training center in DEN told me the creditors decided not to refinance 8 of the 747s for United because another carrier was willing to pay top dollar for these aircraft. He said these aircraft accounted for up to 40% of Uniteds international flying this summer. I'm just wondering if anyone else has heard this, or is this just a rumor?
8 (747) equals 40% UAL international flying???

that seems odd?

747-400: 31
777: 52
767-300: 37
767-200: 2
hbrow15 said:
didn't the bankruptsy judge already block creditors from taking airplanes before?

Yeah... but I think the creditors sued and won the right to repo the airplanes.
Those 8 Whales are heading for the conversion center to be modified into 747-400SF frieghters. Which company??? Only time will tell. hehehe.....;)
SAN FRANCISCO (Dow Jones) -- Bankrupt UAL Corp., which operates United Airlines, said late Tuesday that it has "largely completed" restructuring its aircraft leases in a bid to save the company about $300 million a year.

That savings are part of a bigger push to trim $850 million a year in fleet costs, the Elk Grove, Ill.-based company said.

The agreement with what's called the public debt group covers 105 aircraft that were financed with public debt offerings and "resolves all potential claims associated with these aircraft," United said.

The bankruptcy court overseeing the turnaround of the airline must still approve the deal.

There is one more transaction to buy 14 aircraft that is still pending, UAL ( UALAQ) said.

"Coupled with the pending restructuring of the 14 aircraft whose junior notes we have purchased and whose senior notes we intend to purchase, this agreement would resolve all outstanding aircraft lease issues and provide substantial savings in aircraft fleet costs needed to support United's business plan," said UAL Chief Financial Officer Jake Brace in a statement.
I guess you vultures don't get these planes either. So glad to see that there are about to be some new contestants in BK and that UAL is about to leave.

Bloomberg News

August 10, 2005

United Edges Closer to Exiting Chapter 11

United Airlines said yesterday that it had finished reworking its aircraft lease agreements with creditors who hold debt backed by 105 planes, providing the carrier with $300 million in annual savings.

The airline's parent, the UAL Corporation, said total annual fleet costs had been cut by $850 million since the company filed for bankruptcy protection in December 2002. That excludes the airline's decision this month to buy 14 planes from creditors.

The company, based in Chicago, has said that wrapping up the talks was the largest remaining task before exiting bankruptcy protection.

Last week, UAL said it may not emerge from Chapter 11 until early next year because unsecured creditors wanted more time to review the reorganization plan. The agreement with the holders of debt backed by the planes would need to be approved by the bankruptcy court in Chicago.

In another airline bankruptcy, the judge overseeing the reorganization of US Airways, which plans to emerge from protection this year by combining with America West Airlines, ruled that the airline could send its reorganization plan to creditors for a vote.

The judge, Stephen Mitchell, in Alexandria, Va., scheduled a hearing for final approval on Sept. 15.

Under the plan, creditors owed $50,000 or less will receive cash payments of 10 percent of the allowed amounts. Creditors with unsecured claims will receive stock in the reorganized company. The hearing on final approval is scheduled to take place two days after shareholders in America West vote on whether to approve the planned merger.

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