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Creighton: UA Preparing For Chapter 11

Thu Aug 15, 2002 5:54 am

It looks more and more like United will be filing for Chapter 11. Check out this paragraph from a letter written by Jack Creighton:

"We have given ourselves a very short timeframe -- 30 days -- to conclude
our discussions with all stakeholders," Creighton said. "As a result, the
changes we need to make are urgent, significant and immediate.
Simultaneously, we are preparing for the potential of a Chapter 11 bankruptcy
filing this fall, due to our fourth quarter debt payments. Unless we lower
our costs dramatically, filing for bankruptcy protection will be the only way
we can ensure the company's future and the continued operation of our
airline."

Personally, I think Chapter 11 is the way to go if the unions don't allow cuts in salary. It will certainly help United start fresh and get on the right track.

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