To be a UAL vendor today

atlmd80

Member
Nov 30, 2002
34
0
From the Washington Post
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Furthermore, William Rochelle, a bankruptcy lawyer who has worked on US Airways, Continental Airlines and Trans World Airlines cases, said the government''s rejection could lead United''s main suppliers of fuel, parts and food to begin asking for payments up front, further deleting United''s cash balance. If it were a client of mine, I would have been recommending for several weeks that they not extend credit unless they''re prepared to lose, Rochelle added.
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I thought this was an interesting paragraph. If you thought that UAL was going to file on Sunday would you deliver things like catering to the plane other that COD on Friday or Saturday? I wonder how UAL will deal with this.
 
Aug 20, 2002
1,423
90
Valhalla
www.usaviation.com
Good point. Especially since both sections of today's WSJ are plastered with UA bankruptcy articles, you've got to believe that every business exec in this country is closely re-examining their UA exposure. However the big suppliers have contractual agreements with built-in triggers.

A recent big-company example could be K-Mart, which filed immediately after their food supplier (Fleming) demanded cash-in-advance. Another catalyst for filing could be UA's work comp re-insurer.
 
Aug 20, 2002
1,423
90
Valhalla
www.usaviation.com
Good point. Especially since both sections of today's WSJ are plastered with UA bankruptcy articles, you've got to believe that every business exec in this country is closely re-examining their UA exposure. However the big suppliers have contractual agreements with built-in triggers.

A recent big-company example could be K-Mart, which filed immediately after their food supplier (Fleming) demanded cash-in-advance. Another catalyst for filing could be UA's work comp re-insurer.