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UAL distributing 608,000 more plan shares to unsecured creditors
By Caroline Salls
Pittsburgh, Nov. 8 - UAL Corp., United Airlines' holding company, has begun a distribution of an additional 608,000 shares of common stock to holders of general unsecured claims under UAL's plan of reorganization, according to a company news release.
This equity distribution marks the fifth broad-based distribution, including an initial distribution of 86.16 million shares of United common stock on Feb. 2, 2006. The company emerged from Chapter 11 bankruptcy on Feb. 1, 2006.
Including this most recent distribution, the company said it has distributed 112.2 million shares through the initial and interim distributions out of a total expected distribution of 115 million shares.
With this distribution, the company had 116.92 million shares outstanding as of Nov. 8.
Under the current distribution, United employees will be issued 197,000 shares. Since Feb. 2, 2006, employees will have been issued a total of 35.7 million shares of new common stock.
In connection with the reorganization, employees also received $726 million of notes proceeds, which were distributed in August 2006.
As of Thursday, UAL said 45,000 holders of $29.2 billion of general unsecured claims have received common shares of the company to partially satisfy those claims.
The company said its total unsecured claim exposure estimate, including those that have been partially satisfied, is between $29.3 billion and $29.6 billion.
UAL is holding 2.8 million shares in reserve to satisfy the remaining disputed unsecured claims, and distributions of this stock will take place on a periodic basis as remaining claims disputes are resolved.
UAL is an Elk Grove Township, Ill., airline carrier.
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