As the Jan. 18 bankruptcy court hearing to approve UAL's restructuring plan draws closer, more details are becoming clear and are eliciting more angry cries from creditors and union employees.
The growing anger over the plan is centered around the payout executives would receive under the plan. While it was widely known the plan would give white-collar workers at United Airlines up to 15% of the stock at the reorganized holding company, now details are emerging that indicate CEO Glenn Tilton would receive shares worth about $15 million, and seven other leading executives would divide shares worth an estimated $30 million.
When the reorganization plan was announced last month, the airline indicated that 400 salaried employees are expected to receive shares worth an estimated $285 million. The announcement prompted unsecured creditors as well as machinists and flight attendants to file objections with the bankruptcy court. The creditors complained in their objection before the U.S. Bankruptcy Court for the Northern District of Illinois in Chicago that the stock grant is not tied to any performance measures and does not help retain employees.—Matthew Wurtzel
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