United Airlines Expects Friday To Be The Day

[Paul]

Final Hearings Much Smoother Than Expected

Barring a last minute surprise, it looks like Friday will be the day United executives will finally be able to utter the words they've waited three years to say: goodbye, Chapter 11.

"We're not quite to the finish line, but everybody looked at the situation and said this is essentially done," said United Airlines Chief Financial Officer Jake Brace, after Wednesday's court hearing that resolved the last of the objections to the carrier's plan to emerge from bankruptcy.

At the end of the hearing, Bankruptcy Judge Eugene Wedoff hinted he would rule in favor of United's plan Friday -- as long as United swiftly amends its reorganization plan to reflect the objections.

"All we really need to do now is document the changes," Brace said. "It seems pretty clear that if we do that and show up on Friday, the judge will confirm the plan."

If Wedoff does give his approval Friday, United would exit bankruptcy on February 1 -- thus putting an end to the longest, costliest bankruptcy in the history of US airlines, according to the Rocky Mountain News.

While the decision would technically still allow some groups to appeal the judge's ruling, it appears unlikely they will do so -- especially as United executives were on the receiving end of congratulatory handshakes from many of the attorneys representing the airlines' creditors.

Aero-News Network

 

[Fly]

United Airlines Is Near Bankruptcy's Exit Door
From Associated Press


United Airlines moved to the brink Wednesday of getting a final go-ahead to leave bankruptcy protection, winning court approval for its controversial management stock plan and resolving differences with its combative flight attendants' union.

With all remaining objections to the plan settled or overruled at a daylong confirmation hearing, U.S. Bankruptcy Judge Eugene Wedoff said he expected to sign off on the company's reorganization plan Friday.

The all-but-certain approval prompted a round of congratulatory handshakes among United attorneys and officials in U.S. Bankruptcy Court on Wednesday evening.

"We did everything that we set out to do," Jake Brace, United's chief financial officer, told reporters after the hearing. "We have to wait a couple of days to get the final order we need."

The anticipated ruling Friday, barring last-minute glitches, will remove the final obstacle to the targeted Feb. 1 exit from bankruptcy for United and parent UAL Corp. after a more than three-year restructuring.

All that remains then, Brace said, is to finish United's financing process and get the money from its lenders.

The confirmation hearing represented a last chance for unions and others to air their protests and was scheduled to last as long as three days. But the Elk Grove Village, Ill.-based company sailed through the proceedings in about six hours of courtroom time, despite expectations of a showdown over the stock plan.

Under that plan, 400 management executives stand to receive 8% of the shares that the company intends to issue upon its emergence from bankruptcy — valued at about $152 million. The stock comes on top of annual salaries that will total $3.5 million for the top eight UAL executives.

LA Times

 

[ualdriver]

http://www.thestreet.com/_yahoo/stocks/tra...=FREE&cm_ite=NA

Court Clears UAL Plan

By TSC Staff
1/20/2006 12:50 PM EST
Click here for more stories by TSC Staff


UAL (UALAQ:OTC BB - commentary - research - Cramer's Take) said the bankruptcy court confirmed its reorganization plan, setting the stage for the carrier to emerge from Chapter 11 protection early next month.

The United Airlines holding company said the U.S. Bankruptcy Court for the Northern District of Illinois determined that the plan "provided fair and equitable treatment of creditors and otherwise satisfied the requirements of the Bankruptcy Code." UAL said its creditors committee withdrew all objections to the plan, helping the company to conclude its restructuring.

 

[Fly]

Funny how when the news was bad for United, all the naysayers would swarm the board informing us of their impending glea about our demise and just how they were going to carve us up........wonder why they aren't here now telling us what a great job we did?? Good job everyone!

 

[jbguppy]

Funny how when the news was bad for United, all the naysayers would swarm the board informing us of their impending glea about our demise and just how they were going to carve us up........wonder why they aren't here now telling us what a great job we did?? Good job everyone!

This has been an incredibly tough few years at United. I salute all the employees that worked their way through it and kept this company together. This is indeed a great day for UAL and everyone who works here. Much brighter days are on the horizon, I will take much solace in seeing our success, and also look forward to taking the high road that a lot of others did not. I do not rejoice in the struggles of other companies, as I know how tough it is. Good Luck to all, I know I look forward to competing and showing what a strong carrier United is and will be for decades to come.

Good Job all!!!

JBG

 

[boeing787]

For all of those betting on/wanting our demise...


UP YOURS!

 

[AstroLounge]

For all of those betting on/wanting our demise...
UP YOURS!

I AGREE! I said a LONG time ago, the DAY United shuts down will be a COLD DAY IN HELL....and I for one am glad to see them turn it around. It may have been difficult for the employees but at least UAL remains a QUALITY Airline. Best wishes

 

[mrfish3726]

Airline consultant Michael Roach, however, cautioned UAL is not out of the woods yet. The carrier, which aims to attract business travelers, has done too little to cut costs and may find out the hard way that its restructuring was insufficient, he said.

"They are coming out with costs too high," Roach said. "They are going after the premium customer, and they believe they can get it. If they don't get the revenue, they are in deep trouble."


Only time will tell??????

 

[Fly]

Standard and Poor's assigned the exit loan a B-plus rating, while Moody's gave it a B2 rating - both with stable outlooks.

S&P analyst Philip Baggaley said in a note to investors that the company remains vulnerable to high fuel prices, fierce competition from low-cost domestic carriers and its heavy debt burden, but those weaknesses are somewhat mitigated by United's "extensive and well-positioned route system" and by reductions in labor costs and other financial obligations it has achieved in bankruptcy.

"We believe these ratings validate the work United has done and that the company is well positioned to compete with the strongest carriers, even with the industry's ongoing high fuel costs challenges," said Kathryn Mikells, United's vice president and treasurer.

United said last week it plans to spend more money on airline improvements this year now that its restructuring is virtually complete, earmarking $400 million for capital improvements such as more check-in kiosks, refurbished airplane interiors, upgraded computer systems and new ground equipment.

 

[coolflyingfool]

I just hate how the guys at the top just keep taking care of themselves. I am glad to see UA on the edge of clearing the last hurdle. The front line employees made this happen, so how about giving them the stock! just my thoughts......

 

[C54Capt]

Funny how when the news was bad for United, all the naysayers would swarm the board informing us of their impending glea about our demise and just how they were going to carve us up........wonder why they aren't here now telling us what a great job we did?? Good job everyone!

Welcome back to the game Fly. As you may recall I predicted a Spring '05 emergence from Chapter 11 for UAL. I was only 10 months off on the optimistic side.

 

[Bulscu]

Standard and Poor's assigned the exit loan a B-plus rating, while Moody's gave it a B2 rating - both with stable outlooks.

S&P analyst Philip Baggaley said in a note to investors that the company remains vulnerable to high fuel prices, fierce competition from low-cost domestic carriers and its heavy debt burden, but those weaknesses are somewhat mitigated by United's "extensive and well-positioned route system" and by reductions in labor costs and other financial obligations it has achieved in bankruptcy.

"We believe these ratings validate the work United has done and that the company is well positioned to compete with the strongest carriers, even with the industry's ongoing high fuel costs challenges," said Kathryn Mikells, United's vice president and treasurer.

United said last week it plans to spend more money on airline improvements this year now that its restructuring is virtually complete, earmarking $400 million for capital improvements such as more check-in kiosks, refurbished airplane interiors, upgraded computer systems and new ground equipment.

"What our restructuring has done is ''give us the ability to participate'' in consolidation or not."

 

[magsau]

Welcome back to the game Fly. As you may recall I predicted a Spring '05 emergence from Chapter 11 for UAL. I was only 10 months off on the optimistic side.

Just proves how wrong you are on many things. Why would anyone believe your prediction and or be disappointed when you "missed" it by 10 months? You are not an insider, company officer or any other type of UA leader. Your are a clown with an opinion and when it comes to dealing with the BK process you opinion means squat. So run F9 run. UA is coming to kill you.

 

[robbedagain]

I am glad for all of you UAL folks that your end of CH11 is just about over. Good Luck on the flip side of the moon! As for Michael Roach, he almost never says anything positive about the airlines. I think he was one of many prediciting the Death of USAIR.

 

[FlyUs]

Great job, UAL! It was such a relief when US survived bankruptcy. Unfortunately, our jobs are not as lucrative. At least we live to fight another day. Get ready for consolidation.