UAL committee objects to agreement with Air Wisconsin

By Caroline Salls

Pittsburgh, April 19 - UAL Corp.'s official committee of unsecured creditors objected to the company's proposed agreement between United Air Lines, Inc. and Air Wisconsin Corp.

The objection, filed with the U.S. Bankruptcy Court for the Northern District of Illinois Monday, says "the agreement exposes the debtors' estates to business risks and expenses and the proposed settlement incorporated in the agreement is not in the best interests of the debtors' estates."

The committee said in the filing that the proposed "settlement and transition agreement" puts UAL at risk for expensive serial transitions by allowing Air Wisconsin to select its own ground-handling locations and the unilateral right to stop the service within months in exchange for modest savings and a planned transition in the next few months.

A hearing is scheduled for April 22.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.