Gordian Group acted as financial advisor for the Retired Pilot’s Committee in the UAL bankruptcy
Case Study
UAL
CLIENT: Retired Pilots' Committee of United Air Lines
Services
Restructuring & Debt AdvisoryIndustries
Transportation & AutomotiveProfessionals
Henry OwsleyBusiness Profiles
Situation
UAL Corporation and United Airlines Inc. filed for Chapter 11 in December of 2002. In 2004, the Official Committee of Retired Pilots (the “Committee”) was formed pursuant to §1114 of the Bankruptcy Code and was charged with the fiduciary obligation of acting on behalf of all retired UAL Corporation (“UAL” or the “Debtors”) pilots in conjunction with any proposed modification to their retiree benefits. The Debtors publicly stated that they intended to modify retiree medical benefits and claimed that they were in need of retiree medical benefit concessions in order to secure exit financing required to exit bankruptcy protection.
Engagement
Gordian Group was engaged by the Retired Pilots’ Committee as financial advisors with respect to the Section 1114 proceedings initiated by UAL Corporation, United Air Lines, Inc. and their related companies. Gordian Group analyzed the Debtor’s financial plans, projections and business models, and assisted in negotiating the modification of pension and medical benefit proposals and plans of United’s retired pilots with respect to the Company’s restructuring and prepackaged bankruptcy filing.