UAL seeks extension to exclusive periods

New York, April 11 - UAL Corp. asked the U.S. Bankruptcy Court for the Northern District of Illinois to extend its exclusive periods.

The Chicago-based parent of United Air Lines wants until July 1 to file a plan of reorganization and until Sept. 1 to solicit votes.

The extra time is needed to complete restructuring that is an essential part of emerging from Chapter 11, UAL said in a filing Friday with the court.

While it has preliminary proposals for $2 billion to $2.5 billion of exit financing from four different institutions, all are contingent on United achieving the savings identified in its business plan, the filing said.

Specifically, United must obtain long-term savings from employees represented by IAM and AMFA and, unless an alternative that provides equal cost reductions, terminate its defined benefit pension plans.

In addition, the aircraft leases and the United Express operations must be restructured, other cost reductions implemented and a plan of reorganization drawn up.

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

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