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Fri, Feb 13, 2004

United Requests More Time For Reorganization

Airline Asks Judge To Extend Deadline For Bankruptcy Plan

United Airlines, saddled with a number of unresolved issues in its bankruptcy proceedings, asked a federal judge to give it more time to file a formal plan of reorganization.

The giant carrier asked U.S. Bankruptcy Judge Eugene Wedoff to extend from March 8 to June 30 the period of exclusivity in which United alone can file a reorganization plan. No outside investors or United creditors can submit competing plans during that period. If approved by Wedoff, the new timetable would mean United would have until Aug. 30 to solicit votes on its plan from creditors and other interested parties. Wedoff is expected to approve the motion in United's next monthly bankruptcy hearing on Feb. 20.

Despite the new timetable, Chicago-based United still aims to emerge from Chapter 11 protection by June 30, spokeswoman Jean Medina said.

"This doesn't change the date," she said. "This ensures that the plan we set forth reflects actual outcomes of critical issues."

The nation's second-largest carrier still needs to find out whether it will receive $1.6 billion in U.S. loan guarantees, a condition of the $2 billion in exit financing it obtained from J.P. Morgan Chase and Citigroup. It also must resolve pending changes to its retirees' health benefits, aircraft leases and municipal bond obligations.

Also Monday, United asked Wedoff to deny a request by its flight attendants that the judge appoint a court examiner to investigate United's plan to cut retirees' health benefits. The attendants' union says United tempted thousands of workers last year to retire early by promising them that their health benefits would be protected if they did so. In Monday's filing, United said it repeatedly told workers there could be changes to health benefits, even for those who chose to retire early.

FMI: www.united.com

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© 2007 - 2025 Web Development & Design by Pauli Systems, LC


Debugging Information
ColdFusion Server Enterprise 2023,0,16,330828
Template /ANNTicker.cfm
Time Stamp 02-Dec-25 04:28 AM
Locale English (US)
User Agent Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)
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Total Time Avg Time Count Template
88 ms 88 ms 1 CFC[ C:/inetpub/wwwroot/clients/aero-news.net/Application.cfc | onRequest(/ANNTicker.cfm) ] from C:/inetpub/wwwroot/clients/aero-news.net/Application.cfc
87 ms 87 ms 1 C:/inetpub/wwwroot/clients/aero-news.net/parsed/main.textpost.cfm
52 ms 52 ms 1 C:/inetpub/wwwroot/clients/aero-news.net/model/main/actTextPost.cfm
15 ms 15 ms 1 C:/inetpub/wwwroot/clients/aero-news.net/model/main/qryTextPost.cfm
5 ms 5 ms 1 CFC[ C:/inetpub/wwwroot/clients/aero-news.net/Application.cfc | onRequestStart(/ANNTicker.cfm) ] from C:/inetpub/wwwroot/clients/aero-news.net/Application.cfc
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0 ms 0 ms 13 CFC[ C:/inetpub/wwwroot/clients/aero-news.net/components/utils.cfc | RandomNumber() ] from C:/inetpub/wwwroot/clients/aero-news.net/components/utils.cfc
0 ms 0 ms 1 CFC[ C:/inetpub/wwwroot/clients/aero-news.net/components/utils.cfc | tagstripper(<h2>Airline Asks Judge To Extend Deadline For Bankruptcy Plan</h2>

United Airlines, saddled with a number of unresolved issues in its bankruptcy proceedings, asked a federal judge to give it more time to file a formal plan of reorganization. The giant carrier asked U.S. Bankruptcy Judge Eugene Wedoff to extend from March 8 to June 30 the period of exclusivity in which United alone can file a reorganization plan. No outside investors or United creditors can submit competing plans during that period. If approved by Wedoff, the new timetable would mean United would have until Aug. 30 to solicit votes on its plan from creditors and other interested parties. Wedoff is expected to approve the motion in United's next monthly bankruptcy hearing on Feb. 20. Despite the new timetable, Chicago-based United still aims to emerge from Chapter 11 protection by June 30, spokeswoman Jean Medina said.

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