"UAL says emergence from bankruptcy won't take place this year"

Saturday, August 30, 2003

UAL says emergence from bankruptcy won't take place this year
The Associated Press


UAL Corp., parent of United Airlines, won't emerge from federal bankruptcy
protection this year because of uncertainties surrounding its financial
results and several unresolved issues in the case, a company attorney said
Friday.

James Sprayregen said in court Friday that the airline aims to exit
bankruptcy during the first half of 2004, in line with a previous company
forecast given at the start of the case in December. However, the company
had optimistically predicted that it could emerge by the end of 2003.

''There are a number of tasks and challenges remaining,'' Sprayregen said
Friday.

Though UAL's revenue has improved in recent months, there still are
lingering effects of the war in Iraq and the outbreak of severe acute
respiratory syndrome in Asia, Sprayregen said.

The company needs more time to ensure that its results have stabilized
before leaving court protection.

UAL is working on an updated business plan and has been working on the
details of it with its creditors and others involved in the case.

Sprayregen told Judge Eugene R. Wedoff of the U.S. Bankruptcy Court that the
airline must sort through and classify the claims submitted in the case, an
issue that affects the formation of its new capital structure. UAL also is
continuing with adjustments to its aircraft fleet.

A handful of other issues, such as ongoing contract negotiations with
Atlantic Coast Airlines Holdings Inc., were other factors in the company's
decision-making, he said. Atlantic Coast is the regional airline that flies
routes for UAL under the United Express brand.

UAL will soon seek court permission to extend the exclusivity period on its
reorganization plan, Sprayregen also said. During an exclusive period, a
company in Chapter 11 is protected from creditors filing competing
reorganization plans.

In other news, United said it plans to hire more than 450 part-time
employees in Chicago, Denver and Los Angeles by the end of September.

United is hiring about 250 part-time ramp-service workers in Chicago and 100
in Los Angeles, United spokeswoman Chris Nardella said. Most of those
workers are being rehired after losing their jobs over the last year.

Eighty-four workers will start permanent jobs at Denver International
Airport this week and next, Nardella said Thursday. Another 25 will start
Sept. 22 for de-icing jobs that will last through the winter.

United, which filed for bankruptcy protection in December, is filling seats
at near-record levels in part because it has cut seating capacity
dramatically. The airline has laid off tens of thousands of workers since
its financial troubles began.

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