Starbulletin.com

Friday, January 3, 2003


Creditors’ group
demands UAL pay



Associated Press

CHICAGO >> A group of United Airlines creditors claiming to hold about $3 billion in bonds has put new pressure on the restructuring carrier, seeking court-ordered payments for the leased planes it is flying in bankruptcy.

United Airlines The newly established group said yesterday it also wants United to negotiate with creditors collectively rather than trying to cut revised lease deals one by one.

The group formed in hopes of gaining a say in United's overhaul efforts on behalf of the creditors it represents -- 25 unidentified institutions that hold equipment trust certificates secured by United aircraft.

The ad hoc committee, which is unrelated to the official creditors committee named four days after United's Chapter 11 filing on Dec. 9, filed a motion in federal bankruptcy court on Monday seeking "adequate protection" -- interest plus monthly payments -- for its interests. It asked the court to prohibit United from using the aircraft otherwise.

David Botter, an attorney with the firm representing the group, said it is perhaps United's largest creditor constituency and the airline should talk with it instead of individual creditors.

"We would like to deal with the company as a committee as opposed to the one-off (individual) negotiations that they've been conducting," said Botter, of New York-based Akin Gump Strauss Hauer & Feld.

United spokesman Joe Hopkins declined comment.



| | | PRINTER-FRIENDLY VERSION
E-mail to Business Editor

BACK TO TOP


Text Site Directory:
[News] [Business] [Features] [Sports] [Editorial] [Do It Electric!]
[Classified Ads] [Search] [Subscribe] [Info] [Letter to Editor]
[Feedback]
© 2003 Honolulu Star-Bulletin -- http://archives.starbulletin.com


-Advertisement-