United Airlines expects relatively smooth proceedings this week as it opens a confirmation on its Chapter 11 bankruptcy exit, the culmination of more than three years of restructuring.
The plan already has been endorsed by a majority of creditors and appears all but assured of approval by Judge Eugene Wedoff after a three-day hearing that is set to begin Wednesday in U.S. bankruptcy court in Chicago.
Still, a controversial management stock plan could spark some final fireworks from unions who have their last chance of objecting to the plan devised by parent UAL Corp.
Under that plan, approved last week by the committee representing unsecured creditors, United would set aside 8 percent of the equity it plans to issue - down from 15 percent in its first proposal - for about 400 salaried and management employees.
The flight attendants' union and others are expected to speak out against the disputed stock plan. "In medieval times, people guilty of this kind of greed would have been boiled in oil," Greg Davidowitch, head of the United flight attendants' union, said earlier this month after the details emerged.
Also still being disputed is the company's settlement with the Pension Benefit Guaranty Corp. over termination of its defined-benefit pensions last year.
Another issue that needs to be addressed before United departs bankruptcy in early February is a replacement retirement plan for the flight attendants, who waged an unsuccessful legal battle against the pensions' termination.
United spokeswoman Jean Medina said talks remain under way on ironing out remaining differences on the issues.
"We continue to have discussions and remain hopeful that we can resolve objections," she said. "As we've said all along, we believe the plan is confirmable. We look forward to exiting in February and competing with the strongest carriers."
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