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Published on 1/27/2006 in the Prospect News Distressed Debt Daily.

UAL retired pilots association appeals plan confirmation

By Caroline Salls

Pittsburgh, Jan. 27 - UAL Corp.'s United Retirement Benefits Protection Association appealed the U.S. Bankruptcy Court for the Northern District of Illinois' order confirming UAL's plan of reorganization, according to a Thursday court filing.

The plan was confirmed on Jan. 20.

On Jan. 10, the retired pilots association asked the bankruptcy court to order the company to retabulate the plan votes in the "other unsecured claims" class and to count the votes of retired pilots that they said were improperly disqualified.

According to that motion, the company failed to count the votes of more than 1,500 retired pilots.

On Jan. 12, the retired pilots association asked the bankruptcy court to temporarily allow some of its claims for purposes of voting on the plan amid a dispute between the company and the association regarding the amount of claims for retired pilots applicable to their lost non-qualified pension payments.

The retired pilots said they wanted to temporarily allow only the claims for lost non-qualified pension benefits in the amounts United inserted on the ballots from its books and records, thereby removing any further impediment to counting the retired pilots' individual votes for numerosity purposes.

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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