United requests exclusivity extension to avoid competing plan hearing

By Caroline Salls

Pittsburgh, Dec. 5 - UAL Corp. requested a 60-day extension to its exclusive periods to file a plan of reorganization and solicit votes on the plan, according to a Friday filing with the U.S. Bankruptcy Court for the Northern District of Illinois.

The company wants to extend both of its exclusive periods to March 3 from Jan. 2.

According to the motion, although United is currently in the midst of the solicitation process and preparing for a confirmation hearing beginning on Jan. 18, with an anticipated exit in February, under the current exclusivity deadline, the company will not have a chance to confirm its solicited plan before another party arguably could file a competing plan on Jan. 3.

United said it faces this issue of timing because, in consultation with the official committee of unsecured creditors and the U.S. Trustee's office, the company agreed to substantially lengthen the confirmation, solicitation and voting processes.

"Facing a competing plan on the eve of confirmation would have a wasteful, destabilizing, and distracting effect on United's exit process," the company said in the motion.

A hearing is scheduled for Dec. 16.

UAL, the Chicago-based parent of United, filed for bankruptcy on Dec. 9, 2002. Its Chapter 11 case number is 02-48191.

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