Court Clears UAL Plan

The carrier expects to emerge next month.
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UAL

(UALAQ)

said the bankruptcy court confirmed its reorganization plan, setting the stage for the carrier to emerge from Chapter 11 protection early next month.

The United Airlines holding company said the U.S. Bankruptcy Court for the Northern District of Illinois determined that the plan "provided fair and equitable treatment of creditors and otherwise satisfied the requirements of the Bankruptcy Code." UAL said its creditors committee withdrew all objections to the plan, helping the company to conclude its restructuring.

"The confirmation of our plan validates more than three years of work to make United a sustainable enterprise, ready to compete successfully with the strongest carriers," said CEO Glenn Tilton. "The tremendous work of our employees during the most difficult times is an indication of what we are capable of moving forward. We will build on our momentum as we continue to differentiate United in the marketplace and focus fully on our customers for a stronger future."

UAL said its shares will be canceled when it emerges. Its shares dropped 20 cents Friday to 45 cents. The company said that creditor distributions should begin shortly after its emergence.

United earlier secured $3 billion in exit financing to be provided by JPMorgan, Citigroup and GE Capital and named its new board.