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Old 01-27-2006, 09:40 PM   #7  
hyflyt560
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"These expenses reflect claims allowed against the company from our creditors as part of the restructuring process. In order to conform with the rules of (a set of accounting guidelines called 'Generally Accepted Accounting Principles,)' we have to record the full claims amounts as reorganization expenses now, even though these claims are expected to be settled to just a minor fraction of the claims recorded ... and in most cases, that will be for stock in the new company and not in cash."

The Company expects to report a substantial gain at bankruptcy exit. According to a release issued by United today, these unsecured claims "are not expected to have a significant impact on the Company's cash position."

Ryan is right, that loss, for all practical purposes, is meaningless.
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