August 26, 2005
UAL wins extension on reorganization plan
CHICAGO (Reuters) - A bankruptcy judge on Friday extended
until November 1 United Airlines' right to file a
reorganization plan without interference from others, but he
said it would be the last extension unless some unforeseen
circumstance deemed it necessary.
UAL Corp., has addressed the major obstacles that could prevent
its bankruptcy exit. Therefore, any further extension of its
exclusivity right beyond November 1 would have to have a
compelling reason. The current extension was due to expire on
The carrier, which has been in Chapter 11 since December
2002, has said it aims to file its reorganization plan soon, a
move that would initiate its emergence from bankruptcy
protection from creditors.
"We're going to be filing a plan, I fully expect, in early
September," United Chief Financial Officer Jake Brace told
reporters after a court hearing.
The airline has said it hopes to emerge from bankruptcy
late this year or early in 2006.
United Chief Executive Glenn Tilton on Thursday said the
airline has received proposals for up to $3 billion in exit
financing from four financial institutions, which have reviewed
the carrier's business plan. United had requested only $2.5
billion in exit financing.
The airline has said the four lending institutions are J.P.
Morgan, Citigroup, Deutsche Bank and GE Commercial Finance.