March 18, 2004

United Airlines' Bankruptcy in Trouble

by Jeremy Blachman

Yahoo! News reports that "After running smoothly for 15 months, the bankruptcy proceedings of United Airlines parent UAL Corp. have encountered turbulence that is setting back the company's schedule for emerging from court protection by June 30."

The company is awaiting a decision from the federal government on its application for $1.6 billion in loan guarantees, and for legislation pending in Congress that would ease the burden of future pension obligations on many companies. The airline also must contend with a lawsuit brought by one of its unions, at a time when the aviation industry is facing fresh setbacks from renewed terrorism fears and higher fuel costs.

Bankruptcy has probably been my favorite class in law school so far (perhaps more because of the professor than the subject, but, still, I thought the material was pretty interesting), and I suppose this article is a nice demonstration that bankruptcy is complicated. I bet United's lawyers are having some long nights.

March 18, 2004 11:11 AM | TrackBack
Comments

Did you say: Bankruptzzzzzzzzzzzzzzzzzzzzzzzzzzz

Posted by: Brian at March 18, 2004 01:00 PM

That boring, huh?

Posted by: Sean S at March 18, 2004 05:55 PM

Well, it's all relative. Where I went to school there was a professor that taught Secured Transactions and Bankruptcy and his wife that taught Con Law. He chided one day in class that in his field you generally know all of the rules, but in Con Law it's a bunch of people sitting around asking: "What _is_ freedom?"

After a few weeks, when I went to have him sign my audit card (effectively dropping out of the class), I told him I was making it up by taking his wife's seminar the next semester.

Bankruptcy can actually be very interesting for people with a Law and Economics background.

Posted by: Brian at March 18, 2004 06:50 PM
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