UAL unsecured creditors object to plan confirmation

By Caroline Salls

Pittsburgh, Dec. 14 - UAL Corp.'s official committee of unsecured creditors objected to the company's plan of reorganization, according to a Tuesday filing with the U.S. Bankruptcy Court for the Northern District of Illinois.

According to the objection, the company identified some unresolved issues and concerns of the committee with respect to the plan in the disclosure statement, including the size and terms of the Management Equity Incentive Program, the composition of the post-emergence board of directors and other corporate governance issues, the treatment of executory contracts, unexpired leases and retained causes of action and the scope of rights and remedies of a plan oversight committee.

The committee said it is still in discussions with the company regarding those issues and, while progress has been made and is continuing, a number of the committee's concerns remain open.

Accordingly, the committee filed its objection in order to preserve its right to pursue any remaining objections to the plan at the confirmation hearing.

The plan confirmation hearing is scheduled for Jan. 18.

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

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