UAL to exit bankruptcy!
 

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Pacific Business News (Honolulu) - 4:25 AM HST Friday

United to exit bankruptcy

United Airlines parent UAL Corp. has begun the process for exiting bankruptcy protection by proposing a timeline for it to the bankruptcy court in Chicago.

The schedule, filed Friday, calls for UAL (OTC BB: UALAQ.OB) to file its plan of reorganization and disclosure statement with the court "on or about" Aug. 1.

"Today's filing represents perhaps the most significant step forward in our restructuring," CEO Glenn Tilton said. "We appreciate the substantial contributions of our stakeholders that have brought us to this point."

Tilton thanked United employees for their focus on customers throughout the Chapter 11 bankruptcy, which has last more than two and a half years.

"We are today prepared to begin the exit process to emerge from bankruptcy this fall, despite extraordinary external challenges," CFO Jake Brace said. "We believe this timeline for exit is realistically achievable."

The airline asked the court to fix Aug. 29 as the record date for determining the holders of stocks, bonds, debentures, notes and other securities entitled to receive ballots and materials necessary for voting on the reorganization plan.

My guess is that are back channel pressures on UAL mgt. to "Sh*t or get off the pot" either by the judge or the creditor commitee.

I don't think that they can ask for and get mgt. exclusivity forever, and I'm sure that there are others out there that would like to bring a competeing bid to run UAL.

If they don't offer a business plan soon, I'm sure the creditor committee will listen to others. After all, isn't it the creditors committee that runs the show? They tell the judge what they want and the judge pretty much rubber stamps it?