NYTimes.com Article: United Seeks Delay to File Bankruptcy Plan

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United Seeks Delay to File Bankruptcy Plan

June 5, 2004





United Airlines has asked a United States bankruptcy court
judge for three more months to file a restructuring plan,
saying that its exit from bankruptcy protection is not
likely before the fall.

The airline, the second largest after American Airlines,
sought bankruptcy protection in December 2002 and initially
said it might emerge again by December 2003.

But it has since pushed the date back several times. Most
recently, the airline estimated that it could complete a
restructuring plan by late summer.

United, a unit of UAL, is still waiting for a decision by
the Air Transportation Stabilization Board on its revised
application for $1.6 billion in loan guarantees, which
would form the basis of its $2 billion plan.

The board's rejection of United's original request for $1.8
billion in loan guarantees sent the airline into
bankruptcy.

United said Thursday in its request for more time from the
court that it cannot complete its plan until it received an
answer from the board. Many in the industry speculate that
a decision could come this month, but the board has no
deadline and has not said when it will act. Many people in
the industry speculate that a decision may come this month.


United also said it did not yet have a final agreement with
a group of debt holders and that it was unclear when it
would.

If the court grants United's request, the company's
exclusive right to prepare a restructuring plan would run
until Sept. 30 rather than June 30. Judge Eugene C. Wedoff
of United States Bankruptcy Court in Chicago is expected to
consider the matter at a hearing on June 18.

In the past, Judge Wedoff has said he would consider
extending United's exclusivity month to month.

http://www.nytimes.com/2004/06/05/business/05united.html?ex=1087442925&ei=1&en=0b80463f2a9f691f


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