View Full Version : UAL - Bankruptcy - what happens to the landing slots/bilaterals?
Just read that UAL has confirmed that it has hired bankruptcy attorneys -
http://money.iwon.com/jsp/nw/nwdt_rt.jsp?cat=USMARKET&src=201&feed=reu§ion=news&news_id=reu-n01173922&date=20020801&alias=/alias/money/cm/nw
In the event that UAL does file Chap 11, what would happen to the landing rights and bilateral agreements?
Also, under bankruptcy filing can UAL lay off as many employees as it wants to or would the contract clauses still hold?
arcniz
2nd Aug 2002, 16:29
The link points to nothing useful.
Is this a canard?
PaperTiger
2nd Aug 2002, 19:30
Non-event, but enough to panic the Wall Street sheep.
United spokesman Joe Hopkins confirmed that the airline had hired bankruptcy lawyers, although he said the hiring was shortly after last year's terrorist attacks -- not earlier this year, as the Business Week report that prompted Friday's stock dive said.
Oilhead
2nd Aug 2002, 22:23
Not news by any means; this has been on record for some time. A prudent move post 9/11 in terms of evaluating future options and possibilities. UAL stock is a good buy right now at this current price.
UAL operating performance ironically enough is the best ever right now.
1. Question is valid and not answered
2. Arcniz - its not a duck
UAL confirms hired bankruptcy lawyers-BusinessWeek
Thursday August 1, 11:13 PM EDT
NEW YORK, Aug 1 (Reuters) - UAL Corp. (UAL), parent of loss-making United Airlines, confirmed it hired bankruptcy lawyers earlier this year as the company faces growing chances of a cash crunch by the end of 2002, BusinessWeek reported.
Rising labour costs, increasing debt and shrinking reserves have plagued the world's number two air carrier.
Since the Sept. 11 attacks, which delivered a massive blow to the airline industry worldwide, UAL shares have nosedived 83.45 percent. Its stock closed at $5.22 on Thursday on the New York Stock Exchange.
Frederic Brace, UAL's chief financial officer, told BusinessWeek that because of the company's shaky situation it is now all but shut out of the capital markets.
UAL officials could not be reached for comment.
UAL lost $341 million in the second quarter - its eighth consecutive quarterly loss - and is seeking $1.8 billion in government loan guarantees to help it recover financially. The carrier is also developing alliances with competitors to boost revenue.
UAL reached a code-share deal with US Airways Group (U) last week. The move could also help US Airways avoid bankruptcy. The agreement, yet to be approved by regulators, comes a year after the two airlines failed to cement a $4.3 billion merger.
UAL has said it is concerned about its ability to refinance $900 million in loans due in the fourth quarter. It has about $2.7 billion in total cash and can sustain losses for some time as it works on its application for federal loans and negotiates wage cuts with machinists and flight attendants.
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3. Has 'Boy George' or his gang paid up on any of their promises - I mean 1.8Bio would keep the wolf from the door for a day or two.
Good luck all you UA guys - looks like you could need it.
Are you talking about the Boy George who was going to federalise the security system with new highly trained screeners, AND DID NOT. Who was going to have explosive detection machines in place in a year, AND DID NOT. Who was going to pay for reinforced cockpit doors, AND DID NOT. Who was going to arrange loans for the airlines post Sept. 11 , GUESS WHAT.
Shon7
You ask good questions.
Usually under Chapter 11 protection the company continues to operate. This suggest the landing slots remain.
Your question about whether the airline can dismiss staff is best answered by someone from your part of the world. I would expect they can.
I am not sure if I am welcome to participate on this forum as last time I posted I got a rebuke that you would expect from a 15 year old girl who has just been informed her 25 year old pornstar boyfriend can't spend the night!!! But oh well!
The best explanation of Ch.11 I have come across in recent times I found on the Worldcom site.
http://www1.worldcom.com/infodesk/chapter11/terms/
Chapter 11 is unique to the U.S. Bankruptcy Code and provides the debtor a vehicle for operating its business under protection from its creditors while developing a plan for resolving its financial problems. In a successful Chapter 11 case, the debtor is able to have a plan of reorganization confirmed that enables the debtor to operate successfully in the future free from the burdens that precipitated its Chapter 11 filing. In general, a Chapter 11 plan is a contract among the parties in interest in the debtor's Chapter 11 case. If accepted by the requisite majorities of each class of affected creditors and equity owners and confirmed by the Bankruptcy Court, the plan is binding on all affected parties even if they did not vote in favor of the plan. In certain circumstances a plan may be confirmed even if some (but not all) classes do not accept the plan.
It is my understanding that Delta has already laid off numerous pilots with a no redundancy clause in their contract. I do not know the details of any of that stuff, however it would appear you do not need to be in Ch. 11 to do that!
Yes Sir,
That same - one and only - son of his father - "Boy George" - with apologies to any and all pop stars who are not the focus of our discussion here, and might not realise that, if it were not explicitly said.
Iain
Everybody is entitled to an opinion, and its theirs. They are also allowed to voice it here, as long as Danny agrees.
And that is as good a source of a Ch.11 definition as I have seen also. Bravo. - Don't let them grind you down.
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For the purposes of Danny's and the site's protection: The above is only a personal attempt at humour and is not in any way ment to imply and person living or dead, or in any other form involved with the 3rd rock.