CHICAGO — (Dow Jones/AP) UAL Corp., parent of United Airlines, won't emerge from federal bankruptcy protection this year due to uncertainties surrounding its financial results and several unresolved issues in the case, a company attorney said Friday.
James Sprayregen said in open court Friday morning that the airline aims to exit bankruptcy during the first half of 2004, in line with previous company forecast given at the start of the case in December.
However, the company had optimistically predicted that it could emerge by the end of 2003.
"There are a number of tasks and challenges remaining," Sprayregen said Friday.
Though UAL's revenue has improved in recent months, there still are lingering effects of the war in Iraq and the outbreak of severe acute respiratory syndrome in Asia, Sprayregen said.
The company needs more time to ensure that its results have in fact stabilized before leaving court protection.
UAL is working on an updated business plan and has been working on the details of it with its creditors and others involved in the case.
Sprayregen told Judge Eugene R. Wedoff of the U.S. Bankruptcy Court for the Northern District of Illinois that the airline must sort through and classify the claims submitted in the case, an issue that affects the formation of its new capital structure.
UAL also is continuing with adjustments to its aircraft fleet.