Ready To Exit?

[Fly]

From today's Newsreal:

On Friday, United filed its updated proposed schedule for exiting Chapter 11 with the U.S. Bankruptcy Court. Under the proposed schedule, United will formally begin the exit process on Wednesday, September 7, when it files its Plan of Reorganization and Disclosure Statement.

The hearing to approve the Disclosure Statement is scheduled to begin on October 11, 2005, and may continue until the next day. Following Court approval of the Disclosure Statement, the company will begin the process of soliciting votes on its Plan of Reorganization. United has proposed that the deadline by which eligible parties should have voted on the POR be set for December 1, 2005. This proposed schedule would allow for a confirmation hearing to begin in mid-January 2006, and an official exit from bankruptcy soon thereafter, early in the new year.

In its scheduling motion, United also proposed a process and schedule for obtaining closure in January with respect to three of its largest claims and distributions, prior to the POR confirmation hearing.

We will continue to keep you updated as we move further along in the exit process.

 

[FWAAA]

"Ready to Exit?"

Who knows?

The judge did tell UAL to fish or cut bait (no more POR extensions without good cause), so management has to file the plan and schedule the hearings, even if UAL isn't yet ready.

Should be an interesting hearing.

 

[Fly]

Ual was ready in August.

 

[Borescope]

UAL might have thought so, but the creditors didn't think it would work :down:

 

[FWAAA]

POR was finally filed this morning and the plan provides for the cancelation of the common and preferred stock (whatta surprise). In other news, the UALQ stock begins to float toward zero.

http://biz.yahoo.com/prnews/050907/cgw022.html?.v=25

 

[FWAAA]

Here's the plan: http://www.pd-ual.com/Downloads/Plan%20of%...n%20(Final).pdf

Here's the Summary: http://www.pd-ual.com/downloads/Plan%20Summary%20(Final).pdf

Here's the Disclosure Statement: http://www.pd-ual.com/UALRestruct_DisclosureStatement.html

Lotsa reading.

 

[JungleClone]

Ready to exit? How can UAL be ready for exit when it has yet to prove that it can be consistently profitable?

 

[magsau]

Ready to exit? How can UAL be ready for exit when it has yet to prove that it can be consistently profitable?

[post="298080"][/post]​

jungle clone,

Perhaps you could read the finance reports and come to a conclusion other than your remark as listed above. UAL has been profitable, EXCLUDING REORGANIZATION EXPENSES. So if you take away the lawyer fees for writing the reorg. plan UAL has mad e money. That is what the exit is all about. You can find the finance reports on the united.com site or from any internet service. Read at your own pace to absord the truth.

Also, other than LUV, who is consistently profitable in the airline industry? Please help us out and let us know who is making the most cash. JBLU is starting to show cracks in their profits as the cost of doing business rises and LUB would be negative if not for the fuel hedges.

 

[Vikedog64]

Here's the plan: http://www.pd-ual.com/Downloads/Plan%20of%...n%20(Final).pdf

Here's the Summary: http://www.pd-ual.com/downloads/Plan%20Summary%20(Final).pdf

Here's the Disclosure Statement: http://www.pd-ual.com/UALRestruct_DisclosureStatement.html

Lotsa reading.

[post="297479"][/post]​

The 50 dollar estimate for fuel is a crapshoot. Who the heck knows..

 

[casual rat]

Raising fares can offset the cost of fuel. With DL and NWA in hot water, and maybe a little more gun shy, fare increases should stick JMHO.

 

[FWAAA]

jungle clone,

Perhaps you could read the finance reports and come to a conclusion other than your remark as listed above. UAL has been profitable, EXCLUDING REORGANIZATION EXPENSES. So if you take away the lawyer fees for writing the reorg. plan UAL has mad e money. That is what the exit is all about. You can find the finance reports on the united.com site or from any internet service. Read at your own pace to absord the truth.

[post="298111"][/post]​

No, UAL has NOT been consistently profitable when you exclude organizaion expenses.

UAL has had some operating profits, but when you subtract the interest expense, there are net losses. That's the problem - it has yet to show net profits.

Positive cash flow? Sure.

Operating profits? yep, some.

Net profits? None whatsoever.

And $2.00 jet fuel is just going to exacerbate the problem.

 

[FWAAA]

Raising fares can offset the cost of fuel. With DL and NWA in hot water, and maybe a little more gun shy, fare increases should stick JMHO.

[post="298148"][/post]​

Uhh, the history of bankrupt companies shows that they tend to be desperate for cash and will discount fares substantially just to keep the cash coming in. If DL and NW file Ch 11 as expected, average fares will probably decline this winter, not increase.

Fares will go up when the supply of domestic seats declines. Supply and demand governs ticket prices, not the price of inputs.

 

[Cosmo]

No, UAL has NOT been consistently profitable when you exclude organizaion expenses.

UAL has had some operating profits, but when you subtract the interest expense, there are net losses. That's the problem - it has yet to show net profits.

Positive cash flow? Sure.

Operating profits? yep, some.

Net profits? None whatsoever.

Sorry, but that's not correct. While I will grant you that one month does not constitute a long-term trend, United reported that it achieved a net profit of $76 million in July before the impact of reorganization expenses (see this United press release for details). Time will tell whether United can indeed use July's net results to point to the start of a profitable trend.

 

[FWAAA]

Sorry, but that's not correct. While I will grant you that one month does not constitute a long-term trend, United reported that it achieved a net profit of $76 million in July before the impact of reorganization expenses (see this United press release for details). Time will tell whether United can indeed use July's net results to point to the start of a profitable trend.

[post="298240"][/post]​

D'Oh!!

Oops - my bad. You'd think I would have remembered the July net profit considering I started a thread about it:

http://www.usaviation.com/forums/index.php?showtopic=21327

I should have said "No quarterly profits thus far," as it is entirely possible that UAL showed a net profit (excluding reort expenses) for another month or two in the past 33 months. But still no quarterly profits. Costs way down - need to increase revenue.

 

[casual rat]

Uhh, the history of bankrupt companies shows that they tend to be desperate for cash and will discount fares substantially just to keep the cash coming in.   If DL and NW file Ch 11 as expected, average fares will probably decline this winter, not increase.

Fares will go up when the supply of domestic seats declines.   Supply and demand governs ticket prices, not the price of inputs.

[post="298158"][/post]​

Uhh, there's that cost variable thing involved. Like, if fuel prices rise, you reduce fares? I need help with that logic. Like, if an Airline (like DL or NWA) goes BK, doesn't it, like, get rid of planes? There are many UA and US livery airplanes in the desert. Wouldn't that like, lead to less seats? If there are less seats, doesn't that mean like, the supply of them is reduced? So if demand remains, like the same, and there's less seats, wouldn't that like, mean higher fares dude?