United Airlines parent UAL terminates ESOP plan = = = = Thursday July 3, 5:33 PM EDT = CHICAGO, July 3 (Reuters) - Bankrupt United Airlines said on Thursday it = is formally terminating the employee stock ownership plan after nine year= s and returning assets to workers in a way that preserves tax loss benefi= ts needed for restructuring. United and parent UAL Corp. (UALAQ), the No. 2 U.S. air carrier behind AM= R Corp.'s (AMR) American Airlines, in December filed the largest U.S. air= line bankruptcy ever. UAL has said the common stock has little or no valu= e and likely will be canceled under any court approved reorganization. The Internal Revenue Service issued a ruling allowing share distribution = to plan participants without jeopardizing tax benefits UAL expects from n= et operating losses, UAL said in a filing with the U.S. Securities and Ex= change Commission. = A judge enjoined sale of UAL shares by major groups after the bankruptcy,= including the trustee for the employee stock ownership plan, to preserve= the tax benefits. UAL said in a taped message to employees that workers will be notified so= on of their options for the stock distribution. Senior executives have ag= reed not to sell any stock they have acquired through the employee stock = ownership plan, UAL said. The termination of the plan is not expected to have any impact on the com= pany, UAL said. UAL employees took 55-percent control of the air carrier in 1994 under wh= at was a landmark employee stock ownership plan intended to quell disharm= ony between management and workers. The plan also gave the unions directo= r positions on the board. However, stormy labor relations continued through the start of the bankru= ptcy reorganization and court approval of $2.56 billion of annual labor c= ost cuts in April. The plan's termination was approved by the International Association of M= achinists, which represents mechanics and other workers, and the Air Line= Pilots Association. Sales of employee stock ownership plan stock already had triggered the lo= ss of employee control over UAL in March, which meant the loss of special= veto rights for the union directors on the board among other powers. UAL stock was worth more than $100 per share in the late 1990s, but plung= ed under $1 after the bankruptcy and closed on Thursday at 83 cents. Plan= shares are preferred, but convertible into common stock. = =A92003 Reuters Limited. = Roger EWROPS