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United Wins Court Approval for Bankruptcy PlanJanuary 24, 2006 By: Susan Young Travel Agent
Three years after United Airlines declared bankruptcy, a U.S. bankruptcy court judge approved its final plan of reorganization to emerge from bankruptcy. It's been a rough road for the airline, as more than 25,000 employees lost jobs in the process, and many others took wage and benefit cuts. Despite that, there is a reason to feel good about this plan, said U.S. Bankruptcy Judge Eugene Wedoff. He noted that three years ago, United Airlines was, bluntly, in danger of dying, with all of its assets liquidated and all of its jobs lost. Judge Wedoff also said that now United has the potential to be profitable. Now, the court will wait for 10 days to allow time for any appeals to Wedoff's ruling of approval of the plan. If not, United will emerge from bankruptcy protection on or about Feb. 1.