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Published on 9/24/2004 in the Prospect News Distressed Debt Daily.

Judge grants union request to toss United Air Lines' informational brief on pension plans

New York, Sept. 24 - United Air Lines Inc.'s informational brief on its pension plans was thrown out by judge Eugene Wedoff in response to a request from the Association of Flight Attendants and the International Association of Machinists and Aerospace Workers.

The brief was removed from the record. And the judge ordered United not to make further filings which do not conform to court rules.

Both the information brief and the request from the unions to exclude it were filed Thursday with the U.S. Bankruptcy Court for the Northern District of Illinois.

The unions called the airline's filing of the brief "wholly improper procedurally" and said that it would prejudice future pension plan issues. They said the facts in the brief are not supported by any affadavits or sworn verification, which means the validity of the assertions are questionable.

If United really wants to resolve its pension plan issues, then it should stay focused on discussions with the unions instead of diverting their attention, the unions said.

United said it has worked hard to protect the four pension plans despite criticism that it should move to end them. The plans cover nearly 123,000 people.

The Chicago-based airline filed for bankruptcy on Dec. 9, 2002. Its Chapter 11 case number is 02-48191.


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