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UAL creditors committee attorney says "lots of work" left to be done on business plan
By Ted A. Knutson
Washington, March 7 - United Airlines Inc. unsecured creditors committee counsel Fruman Jacobson told Prospect News there is still "lots of work that needs to be done" to get the company's business plan in shape before the carrier can leave bankruptcy.
Among the tasks still outstanding is to come up with the best operating configuration and decide how to react to changes in the airline industry since UAL entered Chapter 11 over two years ago, the counsel from the Chicago law firm of Sonnenschein Nath & Rosenthal said.
Jacobson said United's goal of leaving bankruptcy protection in the third quarter is reasonable. He added the two factors most likely to delay the departure would be the inability of the firm to work out collective bargaining agreements and settle pension issues.
On March 3, the creditors committee hired airline industry veteran Morris Garfinkle and his company GCW Consulting LLC to work with the group to evaluate and contribute to the airline's business plan, assess strategic planning and examine its fleet plans.
Earlier, Garfinkle advised had Pension Benefit Guarantee Corp. on the United bankruptcy case.
Garfinkle's career with airlines extend back to the 1980s when he was special counsel to Pan American Airlines creditors committee and even further to 1973 when he was a lawyer for the then CIA-owned Air America.
CGW's web site said Garfinkle became an owner of Air America.
The creditors committee asked the bankruptcy court to approve the hire in a filing on March 4. A hearing is set for March 18.
United's parent UAL Corp. filed for bankruptcy on Dec. 9, 2002 with the U.S. Bankruptcy Court for the Northern District of Illinois. Its Chapter 11 case number is 02-48191
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