UAL requests court OK of aircraft financing tax indemnity claims settlement

By Caroline Salls

Pittsburgh, Jan. 10 - UAL Corp. requested court approval of a tax indemnity claims settlement agreement with DFO Partnership, according to a Monday filing with the U.S. Bankruptcy Court for the Northern District of Illinois.

The claims arose from pre-bankruptcy leveraged lease aircraft financing arrangements, under which DFO was the owner participant.

Under the settlement agreement, 12 of DFO's claims will be allowed as non-priority general unsecured claims for a total of $12.84 million.

In return, UAL will withdraw its objections to DFO's claims.

A hearing is scheduled for Thursday.

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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