UAL distributing 2.24 million more plan shares to general unsecured creditors

By Caroline Salls

Pittsburgh, April 27 - UAL Corp., the holding company whose primary subsidiary is United Airlines, has begun a distribution of an additional 2.24 million 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 follows an initial distribution of 86.16 million shares of United common stock on Feb. 2, 2006 and subsequent interim distributions during 2006.

Excluding this most recent distribution, the company said it has distributed 108.95 million shares through the initial and interim distributions.

Under the current distribution, United employees will be issued 844,599 shares. Since Feb. 2, 2006, employees will have been issued a total of 35.51 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.

Upon the completion of this share distribution, UAL said it will have distributed a total of 111.19 million shares to holders of general unsecured claims, out of a total expected distribution of 115 million shares to be distributed to general unsecured creditors under the plan.

As of Friday, UAL said 45,000 holders of $29.1 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 $29.8 billion.

UAL is holding 3.81 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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.