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.