Chapter 11 is a curious animal for those who live outside the USA. In other parts of the World, if a company is bust, it’s bust and goes into receivership. The receiver then decides on the best way of protecting the interests of the creditors, and that may well be to keep the company running as a going concern.
Given that Chapter 11 has as a possible outcome, UA continuing in its present form once revenues pick up again, it’s entirely feasible that we may see the airline fit and well again in the medium term. In other words, the authorities do not envisage that Chapter 11 as a mechanism for closing down a company, merely giving it ‘intensive care’ in the hope of a full recovery.
Assuming you hold contemporary American corporate governance in the same disdain as we do ours, one might be forgiven for thinking that the board of UA are ‘trying it on’. Certainly the document you describe looks like one-handed literature for airline execs to read in the privacy of the little boys room.
You might consider calling their bluff?
Last edited by Capt H Peacock; 11th Jan 2003 at 08:30.