United Exits Bankruptcy!

Jan 14, 2004
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United has exited bankruptcy today with confidence and credibility and, most importantly, with momentum toward a truly promising future. I want to take the opportunity of this call to personally thank you for your support and your hard work during this long and difficult restructuring. You have all shown remarkable resilience and dedication.

When we started this journey three years ago, many people questioned our ability to rebuild United into a company with a sustainable future, but together we have created a fundamentally better airline – strong, confident and ready to compete with the world’s best.

Our customers have supported us, routinely pushing our load factors to historic highs. We have matched their support with new products and even better service that have strengthened our bottom line, and have us well positioned going forward. It’s our responsibility to keep this focus – continuing to innovate and always challenging ourselves to better understand the needs of our customers – and everyone else’s.

Tomorrow, we will list our stock on the NASDAQ and start a new conversation with our investors. Our success in reshaping this business and creating real opportunities for United was absolutely critical in earning our exit financing. We must now continue to build on this confidence, always demonstrating our ability to execute against our business plan and delivering results for our shareholders.

The future that we are heading into will be no less challenging, but we are approaching it now from a position of leadership and strength. We have the best network in the industry and a suite of products that allows us to respond quickly to changes in the market.

We are competing aggressively – and successfully – for new routes, new markets and customers. And we are doing it with competitive costs that will continue to improve, and with operational results and levels of customer satisfaction that continue to set even higher standards.

Our emergence from bankruptcy is not the end of our story – but rather the beginning of a new chapter. Our responsibility is to continue growing stronger, better and more innovative each day -- as we work to generate returns for our investors, service for our customers and opportunities for every employee.

We have earned the right to compete with the world’s strongest airlines – and to succeed in every part of our business. Our team is eager and ready, and now, it’s really time to fly.

Glenn Tilton CEO
 
Well, UAUA opened at $40.83 this morning and at last trade (9:45 Eastern) is at $38.90.

Jim
 
Well, UAUA opened at $40.83 this morning and at last trade (9:45 Eastern) is at $38.90.

Jim


Jim,

@$40/ share is a long way from the @$15/share contemplated in the POR.

I wonder if all the big equity stakes (PBGC/UNIONS etc) trying to sell their shares at first chance is having the downward pressure.

DC
 
Jim,

@$40/ share is a long way from the @$15/share contemplated in the POR.

I wonder if all the big equity stakes (PBGC/UNIONS etc) trying to sell their shares at first chance is having the downward pressure.

DC


Three to avoid: Shell, Sirius and the new United

UNITED: It's out of bankruptcy, and the stock begins trading today. Will the skies be friendly to investors? You may get some sort of pop initially, but over time, not likely. Stock's priced at $40 bucks by the way. After 38 months in bankruptcy, most analysts think the carrier STILL won't make money. It was anticipating $50 a barrel oil. Well it's more like $65 plus nowadays. That's a huge gap. Who may make out? The 400 United execs who were issued shares. New ticker is UAUA (Research). Huh? An airline so nice, they named it twice.

http://money.cnn.com/2006/02/02/commentary...ife/streetlife/
 
Does anyone happen to know the market cap for UAUA?

Well, if an 8% stake at $15/share was worth ~115 million, then the total mkt cap at $15/share would be roughly 1.4375 billion. Which would mean roughly 95 5/6 million (95,833,333) shares outstanding.

So at $40/share, the market cap would be 3 5/6 billion (3.8333 billion).

Round a bit as appropriate, that's obviously a quick calc. I'll note that 2 analysts have already weighed in on the shares at ~$40/share. Bear Sterns rates them as "underperform", and Calyon Securities rates them as "sell".

Have to admit, I'm hard pressed to see UAL at almost 4 billion market cap currently, but one never knows. Well, syncspouse has her pro rata share on convertible notes courtesy of her union and part of a profit share, so here's hoping.

-synchronicity
 
Jim,

@$40/ share is a long way from the @$15/share contemplated in the POR.

In one or more of the early morning reports (before the market opened) I saw where the shares were "priced" at $40 - sorta like an IPO. I have no idea how the initial shares were sold or price set.

Looks like the price is $35.59 @ 11:55 eastern with a low so far of $35.50.

Jim
 

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