UAL, unsecured creditors resolve all Chapter 11 issues; company to file amended plan

By Caroline Salls

Pittsburgh, Jan. 12 - UAL Corp. and its official committee of unsecured creditors have reached a consensual agreement to resolve all of their issues, including the committee's objections to United's plan of reorganization, according to a company news release.

Among issues resolved were those relating to the proposed management equity incentive plan, the amount of the Pension Benefit Guaranty Corp.'s claim, stock and note distributions for salaried and management employees and corporate governance matters.

The final agreement will be reflected in an amended plan, to be filed with the U.S. Bankruptcy Court in the Northern District of Illinois before the Jan. 18 confirmation hearing.

"Being able to reach a global, consensual agreement with the creditors' committee prior to confirmation is the goal in any restructuring and is an enormous accomplishment," chief financial officer and executive vice president Jake Brace said in the release.

"Today's agreement with the creditors' committee, which represents the new owners of United, is a major step forward in concluding our restructuring and continues our strong momentum going into next week's POR confirmation hearing."

"This has been an extraordinarily complicated restructuring, and we look forward to United's successful exit from bankruptcy as the vital competitor it is," committee chair and Airbus of North America chief financial officer Dana Lockhart said in the release.

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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