United Air Lines hearing to extend exclusivity rescheduled for Sept. 17

By Jeff Pines

Washington, Aug. 24 - A hearing in the United Air Lines bankruptcy case to extend the exclusive right to file a plan of reorganization and solicit votes for the plan has been adjourned until Sept. 17, according to a Tuesday filing with the U.S. Bankruptcy Court for the Northern District of Illinois.

United Air Lines, a unit of UAL Corp., wants to extend its exclusive right to file a reorganization plan until Dec. 31 and to give it until March 31, 2005 to solicit votes for the plan. The current exclusive right to file a plan was supposed to end Aug. 30 but will be extended automatically to the hearing date.

United said it needs the extension because it had put all of its efforts into obtaining an Air Transportation and Stabilization Board-backed guarantee for its exit financing. The board decided not to give United its backing.

But the company is taking flak from its unions that United should have had a back-up plan ready to go in case the government decided not to provide the guarantee and does not deserve another extension.

UAL filed for bankruptcy on Dec. 9, 2002. Its Chapter 11 case number is 02-48191.

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