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Published on 9/9/2004 in the Prospect News Distressed Debt Daily.

United files emergency motion over flight attendants' request for trustee

By Jeff Pines

Washington, Sept. 9 - UAL Corp., the parent of United Air Lines Inc., filed an emergency motion Wednesday with the U.S. Bankruptcy Court for the Northern District of Illinois seeking a status conference concerning its flight attendants' move for the court to appoint a trustee.

United wants the status conference so it can get guidance on how to handle the flight attendants' new allegations.

Members of the International Association of Machinists and Aerospace Workers filed a motion last month asking the court to appoint a trustee. The flight attendants filed recently to join the IAMW in its move for a trustee.

United, however, said the filing violates the court's case management procedures, is filled with assertions the airline takes issue with and accuses United's senior executives of mismanagement and dishonesty.

The case management rules for United's bankruptcy require motions to be filed 14 days before the next omnibus hearing. The flight attendants' paperwork was filed only 10 days before the next hearing scheduled for Sept. 17.

In addition, only one of United's four key attorneys on the case received the flight attendants' paperwork.

United said it is preparing an objection to the machinists' request for a trustee.

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


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