Judge Blocks Repossession of 14 United Planes
United Airlines, which has been under Chapter 11 bankruptcy protection since 2002, won a temporary order Friday stopping a group of creditors from repossessing 14 planes.
U.S. Bankruptcy Court Judge Eugene Wedoff ruled in favor of United after the company argued that the creditors were breaking antitrust laws by negotiating as a group, said United Chief Financial Officer Jake Brace after a three-hour emergency hearing in Chicago.
The creditors sought to repossess planes including Boeing 767s and 737s, according to a document sent to attorneys for United parent UAL Corp. and its creditors’ committee.
Wedoff will review the issue at a Dec. 15 hearing.
United has been working with the creditors for two years to reach new lease agreements.