United Airlines Files for Bankruptcy

Discussion in 'Stocks' started by Port1385, Sep 8, 2008.

  1. United Airlines Files for Bankruptcy
    United Airlines, reeling from two years of heavy losses and unable to pay off nearly $1 billion in debt that comes due this week, filed for federal bankruptcy court protection.


    United Airlines, reeling from two years of heavy losses and unable to pay off nearly $1 billion in debt that comes due this week, filed for federal bankruptcy court protection.

    The Chapter 11 filing in U.S. Bankruptcy Court in Chicago is by far the largest airline bankruptcy ever and one of the biggest in U.S. history. The suburban Chicago-based company has lost $4 billion in the last two years due to a slumping economy and flawed business strategies.

    The airline has promised to keep flying while it sheds costs under the auspices of a bankruptcy court judge and overhauls its business plan to try to become profitable again.

    United operates about 1,700 flights a day, or about 20 percent of all U.S. flights. It has the most extensive worldwide route structure of any airline.

    While the bankruptcy likely will have no immediate effect on passengers, protection from creditors will come at a steep price for the 83,000 employees who own 55 percent of the company. A bankruptcy court judge is almost certain to order wage and job cuts and could dissolve the employee stock ownership plan.

    The board of directors of United's parent company, UAL Corp., voted unanimously Sunday night to authorize management to file for bankruptcy, a person familiar with the situation said. The move came as airline officials put final touches on $1.5 billion in debtor-in-possession financing, to be obtained from several banks.

    A spokesman for United's pilots union urged passengers Sunday not to abandon the airline during a bankruptcy filing.

    "We're going to be flying airplanes today, tomorrow, next week and next year," pilot Herb Hunter said.

    "This is going to be painful for the stockholders and the employees, but the airline's going to keep flying and we're going to come out of this stronger," he said. "The passengers shouldn't notice any difference."
  2. That is from 6 years ago. Not cool posting it like it's current.
  3. nkhoi

    nkhoi Moderator

    United Air Parent UAL Says It Didn't File for Bankruptcy Today

    By Mary Schlangenstein

    Sept. 8 (Bloomberg) -- United Airlines parent UAL Corp. said it didn't file for bankruptcy, after a 2002 Chicago Tribune news report on the carrier's filing was incorrectly republished on the Bloomberg terminal by Income Securities Advisors Inc.

    UAL fell 27 percent to $8.97 before the Nasdaq Stock Market halted trading.

    United made no bankruptcy filing today, spokeswoman Jean Medina said in a telephone interview from the airline's headquarters in Chicago.

    Income Securities Advisors retracted the report and published a correction.

    To contact the reporter on this story: Mary Schlangenstein in Dallas at maryc.s@bloomberg.net
  4. how is it possible that everyoone bought this news? being 6 years old and all..........I hope someone goes to jail for this.
  5. Pekelo


  6. nkhoi

    nkhoi Moderator

    "UAL blamed the mess on a posting of a 2002 Chicago Tribune article on the South Florida Sun-Sentinel's website.

    The story then was picked up by Income Securities Advisors, a Florida investment newsletter, and disseminated as a one-line brief over Bloomberg News -- triggering a wave of panic selling."

    to Income Securities Advisors's subscribers, cancel your membership NOW!
  7. If they went short based on the Tribune article then listed the story on their website, I think they would be legally clear.
  8. You and I **know** that this was NO ACCIDENT. This was a carefully concocted plan by a few individuals. These individuals may have been short/long the stock or might have even purchased puts right before.

    Many persons will be lead to believe that this was just a glitch, but it wasnt. Someone made hundreds of thousands or even millions off of this "glitch".
  9. joemiami

    joemiami Guest

    SEC has to investigate this "info glitch" bcuz someone out there knew that this was going to happen and made a ton of money from it. Shouldnt take that long for them to see who entered big long positions on UAL before that "old" news came out.
    #10     Sep 9, 2008