UAL presents plan to exit investors, sees little or no value for equity holders in reorganization

Chicago, June 10 - UAL Corp. has begun to present its updated business plan to its board of directors, creditors' committee and potential sources of exit financing and said that there will not be any "meaningful" distribution to equity holders.

"In connection with the development of the business plan and the company's preparation for exit from bankruptcy, based on numerous factors, including the competing claims of the company's constituencies against UAL and its bankruptcy estates, the company has concluded that its assets will be insufficient to permit any meaningful distribution to its equity holders," UAL said in a Securities and Exchange Commission filing.

The Chicago-based airline said its equity securities have little or no value and it is highly likely that the equity in UAL will be canceled under any plan of reorganization proposed by the company.

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