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FOR THE NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
In re: | ) | Chapter 11 | ||||
) | ||||||
UAL Corporation,et al., | ) | |||||
) | Case No. 02-B-48191 | |||||
Debtors.1 | ) | (Jointly Administered) | ||||
) | Honorable Eugene R. Wedoff |
REORGANIZATION PURSUANT TO CHAPTER 11 OF THE UNITED STATES
BANKRUPTCY CODE
• | Record Date: ___, 2005 | ||
• | Voting Deadline: ___, 2005 | ||
• | Date by which objections to Confirmation of the Plan must be filed and served: ___, 2005 | ||
• | Hearing on Confirmation of the Plan: ___, 2006 at ___:00 ___.m. |
Marc Kieselstein, P.C.
David R. Seligman
David A. Agay
Erik W. Chalut
KIRKLAND & ELLIS LLP
200 East Randolph Drive
Chicago, Illinois 60601
(312) 861-2000
Counsel for the Debtors and the Debtors in Possession
1 | The Debtors are the following entities: Air Wisconsin, Inc., Air Wis Services, Inc., BizJet Charter, Inc., BizJet Fractional, Inc., BizJet Services, Inc., Ameniti Travel Clubs, Inc., Cybergold, Inc., Domicile Management Services, Inc., Four Star Leasing, Inc., itarget.com, inc., Kion Leasing, Inc., Mileage Plus, Inc., Mileage Plus Holdings, Inc., Mileage Plus Marketing, Inc., MyPoints.com, Inc., MyPoints Offline Services, Inc., Premier Meeting and Travel Services, Inc., UAL Benefits Management, Inc., UAL Company Services, Inc., UAL Corporation, UAL Loyalty Services, LLC, United Air Lines, Inc., United Aviation Fuels Corporation, United BizJet Holdings, Inc., United Cogen, Inc., United GHS, Inc., United Vacations, Inc., and United Worldwide Corporation. |
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SUMMARY
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2 | Several documents that are included in the Plan Supplement are described herein, but these summaries are not a substitute for a complete understanding of the underlying documents. You are urged to review the full text of all such documents in the Plan Supplement. |
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Projected Recovery | ||||||
Claim | Plan Treatment | Under the Plan | ||||
Administrative Claims | Paid in full | 100.0 | % | |||
Priority Tax Claims | Paid in full in cash; paid in cash on a deferred quarterly basis over a period not exceeding six years after the date of assessment of such Priority Tax Claim; or paid on such other amount and terms as agreed by the Debtor and the Holder | 100.0 | % |
Projected | ||||||||||||
Recovery | ||||||||||||
Under the | ||||||||||||
Class | Claim | Plan Treatment of Class | Plan3 | Status | Voting Rights | |||||||
1A | DIP Facility Claims | Paid in full | 100.0 | % | Unimpaired | Deemed to Accept | ||||||
1B-1 | Secured Aircraft Claims | Reinstated; such treatment as to which UAL or Reorganized UAL and the Secured Aircraft Creditor shall have agreed in writing; return of collateral; or treatment otherwise rendering such Secured Aircraft Claim Unimpaired | 100.0 | % | Unimpaired | Deemed to Accept | ||||||
1B-2 | Other Secured Claims | Reinstated; paid in full in Cash; return of collateral; or treatment otherwise rendering such Other Secured Claim Unimpaired | 100.0 | % | Unimpaired | Deemed to Accept | ||||||
1C | Other Priority Claims | Paid in full | 100.0 | % | Unimpaired | Deemed to Accept | ||||||
1D | Unsecured Convenience Class Claims | Cash equal to the gross proceeds from the sale of such Holder’s pro rata share of the Unsecured Distribution less the amount of any discount, commission, or fee paid or incurred on such sale and any taxes withheld or paid on account of such sale | 4-7 | % | Impaired | Entitled to Vote |
3 | Failure by the Bankruptcy Court to order substantive consolidation of the United Debtors does not affect the projected recoveries under the Plan. |
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Projected | ||||||||||||
Recovery | ||||||||||||
Under the | ||||||||||||
Class | Claim | Plan Treatment of Class | Plan3 | Status | Voting Rights | |||||||
1E-1 | Unsecured Retained Aircraft Claims | Pro rata share of the Unsecured Distribution | 4-7 | % | Impaired | Entitled to Vote | ||||||
1E-2 | Unsecured Rejected Aircraft Claims | Pro rata share of the Unsecured Distribution | 4-7 | % | Impaired | Entitled to Vote | ||||||
1E-3 | Other Unsecured Claims | Pro rata share of the Unsecured Distribution | 4-7 | % | Impaired | Entitled to Vote | ||||||
1F | TOPrS Claims | Not entitled to receive any distribution or retain any property under the Plan | 0 | % | Impaired | Deemed to Reject | ||||||
1G | Preferred Stock Interests | Not entitled to receive any distribution or retain any property under the Plan | 0 | % | Impaired | Deemed to Reject | ||||||
1H | Common Stock Interests | Not entitled to receive any distribution or retain any property under the Plan | 0 | % | Impaired | Deemed to Reject | ||||||
1I | Subordinated Securities Claims | Not entitled to receive any distribution or retain any property under the Plan | 0 | % | Impaired | Deemed to Reject |
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Recovery | ||||||||||||
Under the | ||||||||||||
Class | Claim | Plan Treatment of Class | Plan | Status | Voting Rights | |||||||
2A | DIP Facility Claims | Paid in full | 100.0 | % | Unimpaired | Deemed to Accept | ||||||
2B-1 | Secured Aircraft Claims | Reinstated; such treatment as to which United or Reorganized United and the Secured Aircraft Creditor shall have agreed in writing; return of collateral; or treatment otherwise rendering such Secured Aircraft Claim Unimpaired | 100.0 | % | Unimpaired | Deemed to Accept | ||||||
2B-2 | Other Secured Claims | Reinstated; paid in full in Cash; return of collateral; or treatment otherwise rendering such Other Secured Claim Unimpaired | 100.0 | % | Unimpaired | Deemed to Accept | ||||||
2C | Other Priority Claims | Paid in full | 100.0 | % | Unimpaired | Deemed to Accept |
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Projected | ||||||||||||
Recovery | ||||||||||||
Under the | ||||||||||||
Class | Claim | Plan Treatment of Class | Plan | Status | Voting Rights | |||||||
2D-1 | Unsecured Convenience Class Claims | Cash equal to the gross proceeds from the sale of such Holder’s pro rata share of the Unsecured Distribution less the amount of any discount, commission, or fee paid or incurred on such sale and any taxes withheld or paid on account of such sale | 4-7 | % | Impaired | Entitled to Vote | ||||||
2D-2 | Unsecured Retiree Convenience Class Claims | Cash equal to the gross proceeds from the sale of such Holder’s pro rata share of the Unsecured Distribution less the amount of any discount, commission, or fee paid or incurred on such sale and any taxes withheld or paid on account of such sale | 4-7 | % | Impaired | Entitled to Vote | ||||||
2E-1 | Unsecured Retained Aircraft Claims | Pro rata share of the Unsecured Distribution | 4-7 | % | Impaired | Entitled to Vote | ||||||
2E-2 | Unsecured Rejected Aircraft Claims | Pro rata share of the Unsecured Distribution | 4-7 | % | Impaired | Entitled to Vote | ||||||
2E-3 | Unsecured PBGC Claims | New UAL PBGC Securities and pro rata share of the Unsecured Distribution | Value of securities plus 4-7% | Impaired | Entitled to Vote | |||||||
2E-4 | Unsecured Chicago Municipal Bond Claims | New UAL O’Hare Municipal Bonds and pro rata share of the Unsecured Distribution | Value of securities plus 4-7% | Impaired | Entitled to Vote | |||||||
2E-5 | Unsecured Public Debt Aircraft Claims | Pro rata share of the Unsecured Distribution | 4-7 | % | Impaired | Entitled to Vote | ||||||
2E-6 | Other Unsecured Claims | Pro rata share of the Unsecured Distribution | 4-7 | % | Impaired | Entitled to Vote | ||||||
2H | Common Stock Interests | Not entitled to receive any distribution under the Plan; provided, however, that Debtors reserve the right to reinstate at any time | 0 | % | Impaired | Deemed to Reject | ||||||
2I | Subordinated Securities Claims | Not entitled to receive any distribution or retain any property under the Plan | 0 | % | Impaired | Deemed to Reject |
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Projected | ||||||||||||
Recovery | ||||||||||||
Under the | ||||||||||||
Class | Claim | Plan Treatment of Class | Plan | Status | Voting Rights | |||||||
3A | DIP Facility Claims | Paid in full | 100.0 | % | Unimpaired | Deemed to Accept | ||||||
3B-1 | Secured Aircraft Claims | Reinstated; such treatment as to which United or Reorganized United and the Secured Aircraft Creditor shall have agreed in writing; return of collateral; or treatment otherwise rendering such Secured Aircraft Claim Unimpaired | 100.0 | % | Unimpaired | Deemed to Accept | ||||||
3B-2 | Other Secured Claims | Reinstated; paid in full in Cash; return of collateral; or treatment otherwise rendering such Other Secured Claim Unimpaired | 100.0 | % | Unimpaired | Deemed to Accept | ||||||
3C | Other Priority Claims | Paid in full | 100.0 | % | Unimpaired | Deemed to Accept | ||||||
3D | Unsecured Convenience Class Claims | Cash equal to the gross proceeds from the sale of such Holder’s pro rata share of the Unsecured Distribution less the amount of any discount, commission, or fee paid or incurred on such sale and any taxes withheld or paid on account of such sale | 4-7 | % | Impaired | Entitled to Vote | ||||||
3E-1 | Unsecured Retained Aircraft Claims | Pro rata share of the Unsecured Distribution | 4-7 | % | Impaired | Entitled to Vote | ||||||
3E-2 | Unsecured Rejected Aircraft Claims | Pro rata share of the Unsecured Distribution | 4-7 | % | Impaired | Entitled to Vote | ||||||
3E-3 | Other Unsecured Claims | Pro rata share of Unsecured Distribution | 4-7 | % | Impaired | Entitled to Vote | ||||||
3H | Common Stock Interests | Not entitled to receive any distribution under the Plan; provided, however, that Debtors reserve the right to reinstate at any time | 0 | % | Impaired | Deemed to Reject |
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Projected | ||||||||||||
Recovery | ||||||||||||
Under the | ||||||||||||
Class | Claim | Plan Treatment of Class | Plan | Status | Voting Rights | |||||||
4A through 28A | DIP Facility Claims | Paid in full | 100.0 | % | Unimpaired | Deemed to Accept | ||||||
4B through 28B | Other Secured Claims | Reinstated; paid in full in Cash; return of collateral; or treatment otherwise rendering such Other Secured Claim Unimpaired | 100.0 | % | Unimpaired | Deemed to Accept | ||||||
4C through 28C | Other Priority Claims | Paid in full | 100.0 | % | Unimpaired | Deemed to Accept | ||||||
4D through 28D | Unsecured Convenience Class Claims | Cash equal to the gross proceeds from the sale of such Holder’s pro rata Distribution less the amount of any discount, commission, or fee paid or incurred on such sale and any taxes withheld or paid on account of such sale | 4-7 | % | Impaired | Entitled to Vote | ||||||
4E through 28E | Unsecured Claims | Pro rata share of Unsecured Distribution | 4-7 | % | Impaired | Entitled to Vote | ||||||
4H through 28H | Common Stock Interests | Not entitled to receive any distribution under the Plan; provided, however, that Debtors reserve the right to reinstate at any time | 0 | % | Impaired | Deemed to Reject |
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Classes | Claims and Interests | |
DIP Facility Claims | 2A, 3A, 4A, 5A, 6A, 7A, 8A, 9A, 10A, 11A, 12A, 13A, 14A, 15A, 16A, 17A, 18A, 19A, 20A, 21A, 22A, 23A, 24A, 25A, 26A, 27A, and 28A | |
Secured Aircraft Claims | 2B-1 and 3B-1 | |
Other Secured Claims | 2B-2, 3B-2, 3B, 5B, 6B, 7B, 8B, 9B, 10B, 11B, 12B, 13B, 14B, 15B, 16B, 17B, 18B, 19B, 20B, 21B, 22B, 23B, 24B, 25B, 26B, 27B, and 28B | |
Other Priority Claims | 2C, 3C, 4C, 5C, 6C, 7C, 8C, 9C, 10C, 11C, 12C, 13C, 14C, 15C, 16C, 17C, 18C, 19C, 20C, 21C, 22C, 23C, 24C, 25C, 26C, 27C, and 28C | |
Unsecured Convenience Class Claims | 2D-1, 3D, 4D, 5D, 6D, 7D, 8D, 9D, 10D, 11D, 12D, 13D, 14D, 15D, 16D, 17D, 18D, 19D, 20D, 21D, 22D, 23D, 24D, 25D, 26D, 27D, and 28D | |
Unsecured Retiree Convenience Class Claims | 2D-2 | |
Unsecured Retained Aircraft Claims | 2E-1 and 3E-1 | |
Unsecured Rejected Aircraft Claims | 2E-2 and 3E-2 | |
Unsecured PBGC Claim | 2E-3 | |
Unsecured Chicago Municipal Bond Claim | 2E-4 | |
Unsecured Public Debt Aircraft Claims | 2E-5 | |
Other Unsecured Claims | 2E-6, 3E-3, 4E, 5E, 6E, 7E, 8E, 9E, 10E, 11E, 12E, 13E, 14E, 15E, 16E, 17E, 18E, 19E, 20E, 21E, 22E, 23E, 24E, 25E, 26E, 27E, and 28E | |
Common Stock Interests | 2H, 3H, 4H, 5H, 6H, 7H, 8H, 9H, 10H, 11H, 12H, 13H, 14H, 15H, 16H, 17H, 18H, 19H, 20H, 21H, 22H, 23H, 24H, 25H, 26H, 27H, and 28H | |
Subordinated Securities Claims | 2I |
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4 | Certain of the Debtors’ IAM and AMFA-represented employees were entitled to an effective wage increase, retroactive from July 12, 2000, to mid-March 2002 (herein, the “Retroactive Pay���). Retroactive Pay was payable in eight quarterly installments at 6% interest, compounded annually. United made the first installment payment on December 13, 2002, and the final payment on October 15, 2004. | |
5 | The estimate of Allowed Unsecured Claims includes, among other things, proposed distributions to the Debtors’ employee groups as discussed in Article III.C.4 herein. |
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Unsecured Convenience Class Claims | 2D-1, 3D, 4D, 5D, 6D, 7D, 8D, 9D, 10D, 11D, 12D, 13D, 14D, 15D, 16D, 17D, 18D, 19D, 20D, 21D, 22D, 23D, 24D, 25D, 26D, 27D, and 28D | |
Unsecured Retiree Convenience Class Claims | 2D-2 | |
Unsecured Retained Aircraft Claims | 2E-1 and 3E-1 | |
Unsecured Rejected Aircraft Claims | 2E-2 and 3E-2 | |
Unsecured PBGC Claim | 2E-3 | |
Unsecured Chicago Municipal Bond Claim | 2E-4 | |
Unsecured Public Debt Aircraft Claims | 2E-5 | |
Other Unsecured Claims | 2E-6, 3E-3, 4E, 5E, 6E, 7E, 8E, 9E, 10E, 11E, 12E, 13E, 14E, 15E, 16E, 17E, 18E, 19E, 20E, 21E, 22E, 23E, 24E, 25E, 26E, 27E, and 28E |
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If by U.S. Mail: | If by courier/hand delivery: | |
Poorman-Douglas Corporation | Poorman-Douglas Corporation | |
UAL Balloting | UAL Balloting | |
P.O. Box 4349 | 10300 SW Allen Boulevard | |
Portland, Oregon 97208-4349 | Beaverton, Oregon 97005 |
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Subject to Rule 408 of the Federal Rules of Evidence. Not admissible in any Court Proceedings.
Subject to Material Change
Draft As of: 6:12 AM on 9/2/2005
GENERAL INFORMATION
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6 | The remaining $0.4 billion is attributable to the UAL Loyalty Services segment, as described below. |
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2004 | 2003 | 2002 | ||||||||||
Gallons consumed (in millions) | 2,349 | 2,202 | 2,458 | |||||||||
Average price per gallon, including tax and hedge impact | $ | 1.25 | $ | 0.94 | $ | 0.78 | ||||||
Cost (in millions) | $ | 2,943 | $ | 2,072 | $ | 1,921 |
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Number of | Contract Open for | |||||||
Employee Group | Employees | Union | Amendment | |||||
Pilots | 6,420 | ALPA | January 1, 2010 | |||||
Flight Attendants | 14,868 | AFA | January 8, 2010 | |||||
Mechanics and Related | 6,138 | AMFA | January 1, 2010 | |||||
Public Contact Employees/Ramp & Stores/Food Service Employees/Security Officers/Maintenance Instructors/Fleet Technical Instructors | 18,350 | IAM | January 1, 2010 | |||||
Dispatchers | 160 | PAFCA | January 1, 2010 | |||||
Meteorologists | 19 | TWU | January 1, 2010 | |||||
Engineers | 292 | IFPTE | Negotiating Initial Contract |
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Aircraft Type | Number | |||
Boeing 737-500 | 29 | |||
Boeing 737-300 | 91 | |||
Boeing 757-200 | 69 | |||
Boeing 767-300 | 30 | |||
Boeing 777-200A | 21 | |||
Boeing 777-200B | 37 | |||
Boeing 747-400 | 36 | |||
Airbus 319 | 54 | |||
Airbus 320 | 96 | |||
Total: | 463 |
7 | The 567 aircraft operated by United as of the Petition Date do not include certain regional and other aircraft leased by United to Air Wisconsin and Federal Express and certain aircraft parked as of the Petition Date. | |
8 | The remaining nine aircraft in United’s fleet are not subject to Section 1110 of the Bankruptcy Code, as more fully described herein, and thus not subject to the same restructuring process as the other aircraft in the fleet. |
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Original Principal | ||||
Amount | ||||
Series | ($ in millions) | |||
101/4 % Debentures due July 15, 2021 | $ | 300.0 | ||
93/4 % Debentures due August 15, 2021 | $ | 250.0 | ||
9% Notes due December 15, 2003 | $ | 150.0 | ||
91/8 % Debentures due January 15, 2012 | $ | 200.0 | ||
10.67% Series A Debentures due May 1, 2004 | $ | 370.2 | ||
11.21% Series B Debentures due May 1, 2014 | $ | 371.0 | ||
Total: | $ | 1,641.2 |
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Original | ||||||||
Principal | ||||||||
Amount | ||||||||
Series | Issue Date | Maturity | ($ in millions) | |||||
California Statewide Communities Development Authority Special Facility Revenue Bonds, Series 1997 (United Air Lines, Inc. — Los Angeles International Airport Projects) | November 1, 1997 | October 1, 2034 | $ | 190.2 | ||||
California Statewide Communities Development Authority Special Facility Revenue Bonds, Series 2001 (United Air Lines, Inc. — Los Angeles International Airport Cargo Project) | April 1, 2001 | October 1, 2035 | $ | 34.6 | ||||
California Statewide Communities Development Authority Special Facilities Lease Revenue Bonds, 1997 Series A (United Air Lines, Inc. — San Francisco International Airport Projects) | August 1, 1997 | October 1, 2033 | $ | 154.8 | ||||
California Statewide Communities Development Authority Special Facilities Lease Revenue Bonds, 2000 Series A (United Air Lines, Inc. — San Francisco International Airport Terminal Projects) | November 1, 2000 | October 1, 2034 | $ | 33.2 | ||||
City of Chicago, Chicago O’Hare International Airport, Special Facilities Revenue Refunding Bonds (United Air Lines, Inc. Project) Series 1999A | February 1, 1999 | September 1, 2016 | $ | 121.4 | ||||
City of Chicago, Chicago O’Hare International Airport, Special Facilities Revenue Refunding Bonds (United Air Lines, Inc. Project) Series 1999B | February 1, 1999 | April 1, 2011 | $ | 40.3 | ||||
City of Chicago, Chicago O’Hare International Airport, Special Facilities Revenue Refunding Bonds (United Air Lines, Inc. Project) Series 2000A | June 1, 2000 | November 1, 2011 | $ | 38.4 | ||||
City of Chicago, Chicago O’Hare International Airport, Special Facilities Revenue Refunding Bonds (United Air Lines, Inc. Project) Series 2001A-1 | February 1, 2001 | November 1, 2035 | $ | 102.6 | ||||
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Original | ||||||||
Principal | ||||||||
Amount | ||||||||
Series | Issue Date | Maturity | ($ in millions) | |||||
City of Chicago, Chicago O’Hare International Airport, Special Facilities Revenue Refunding Bonds (United Air Lines, Inc. Project) Series 2001A-2 | February 1, 2001 | November 1, 2035 | $ | 100.0 | ||||
City of Chicago, Chicago O’Hare International Airport, Special Facilities Revenue Refunding Bonds (United Air Lines, Inc. Project) Series 2001B | February 1, 2001 | November 1, 2035 | $ | 49.3 | ||||
City of Chicago, Chicago O’Hare International Airport, Special Facilities Revenue Refunding Bonds (United Air Lines, Inc. Project) Series 2001C | February 1, 2001 | May 1, 2016 | $ | 149.4 | ||||
City and County of Denver, Colorado, Special Facility Airport Revenue Bonds (United Air Lines, Inc. Project) Series 1992A | October 1, 1992 | October 1, 2032 | $ | 261.4 | ||||
Indianapolis Airport Authority 6.50% Special Facility Revenue Bonds, Series 1995A (United Air Lines, Inc., Indianapolis Maintenance Center Project) | June 1, 1995 | November 15, 2031 | $ | 220.7 | ||||
Massachusetts Port Authority Special Facility Bonds (United Air Lines, Inc. Project) Series 1999A | December 1, 1999 | October 1, 2029 | $ | 80.5 | ||||
Miami-Dade County Industrial Development Authority Special Facilities Revenue Bond (United Air Lines, Inc. Project) Series 2000 | March 1, 2000 | March 1, 2035 | $ | 32.4 | ||||
New York City Industrial Development Agency Special Facility Revenue Bonds, Series 1997 (1997 United Air Lines, Inc. Project) | July 1, 1997 | July 1, 2032 | $ | 34.2 | ||||
Regional Airports Improvement Corporation Adjustable-Rate Facilities Lease Refunding Revenue Bonds, Issue of 1984, United Air Lines, Inc. (Los Angeles International Airport) | October 1, 1984 | November 15, 2021 | $ | 25.0 | ||||
RAIC Facilities Lease Refunding Revenue Bonds, Issue of 1992, United Air Lines, Inc. (Los Angeles International Airport) | October 1, 1992 | November 15, 2012 | $ | 34.4 | ||||
TOTAL | $ | 1,702.8 |
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Name | Position | |
Glenn F. Tilton | Chairman, President and Chief Executive Officer | |
Frederic F. Brace | Executive Vice President and Chief Financial Officer | |
Sara A. Fields | Senior Vice President — People | |
Douglas A. Hacker | Executive Vice President | |
Paul R. Lovejoy | Senior Vice President, General Counsel and Secretary | |
Peter D. McDonald | Executive Vice President and Chief Operating Officer | |
Rosemary Moore | Senior Vice President — Corporate and Government Affairs | |
Richard J. Poulton | Senior Vice President — Business Development | |
John P. Tague | Executive Vice President — Marketing, Sales and Revenue |
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THE CHAPTER 11 CASES
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9 | As a condition to obtaining DIP financing from Bank One at the inception of these Chapter 11 Cases, the Debtors assumed a co-branded credit card agreement (the “Co-Branded Card Agreement”) with Bank One. The Co-Branded Card Agreement contains a liquidated damages clause that would result in a $700 million postpetition claim against United, ULS, and UAL in the event of a breach before the end of 2005. This liquidated damages clause reduces to $600 million for breaches that occur on or after January 1, 2006. |
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10 | The estimate of Allowed Unsecured Claims includes, among other things, proposed distributions to the Debtors’ employee groups as discussed in Article III.C.4 herein. |
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11 | In addition, the Debtors sponsor the United Air Lines, Inc. Employees’ Variable Benefit Retirement Income Plan which is a small frozen defined benefit pension plan. No contributions are currently due with respect to this Plan. |
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12 | In July 2003, the National Mediation Board announced that the Debtors’ mechanics and related employees, previously represented by the IAM, voted to change their union representation to AMFA. This change in representation from IAM to AMFA had no effect on the terms or duration of the modified CBAs ratified in April 2003. |
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13 | On February 2, 2004, in connection with the Section 1114 process, the AFA filed a motion for appointment of an examiner under Section 1104(c) of the Bankruptcy Code. The AFA argued that an examiner was warranted to determine whether the Debtors intentionally enticed flight attendants into retiring early while at the same time not disclosing that they had already decided to seek modification to their retiree benefits under Section 1114 of the Bankruptcy Code. IAM and AMFA joined this request. The Debtors opposed the request. On February 20, 2004, the Bankruptcy Court ordered the appointment of Ross O. Silverman as examiner (the “Examiner”) for the limited purpose of determining whether the Debtors decided to seek Section 1114 relief prior to July 1, 2003. On March 19, 2004, the Examiner submitted his report to the Bankruptcy Court. The report concluded that the Debtors’ decision to seek relief under Section 1114 was not made before December 15, 2003. |
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14 | The term “feasible” as used in Bridge’s report was defined as “the quality of being doable.” |
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(ii) | Revisiting the Section 1113 Process and Termination and Replacement of the Pension Plans. |
(a) | The Debtors’ December 2004 Agreements with ALPA, PAFCA and TWU |
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(b) | The Debtors’ Reconstituted Agreements with ALPA, TWU, and PAFCA |
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15 | Two parties, the United Retired Pilots Benefit Protection Association (“URPBPA”) and PBGC, appealed the Bankruptcy Court’s approval of the ALPA 2005 Restructuring Agreement. The Debtors filed motions to dismiss both appeals. On June 24, 2005, the District Court dismissed the URPBPA appeal. On July 19, 2005, URPBPA appealed the District Court’s ruling to the Seventh Circuit Court of Appeals. The Seventh Circuit has set a deadline for URPBPA to file its opening brief of September 16, 2005. On July 22, 2005, the District Court entered an order approving PBGC’s motion to voluntarily dismiss its appeal. |
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(c) | PBGC’s Commencement of Involuntary Termination Actions Regarding the Pilot Plan |
(d) | Debtors’ 2005 Agreement with AFA, Original 2005 Tentative Agreement with AMFA, and 1113(e) Relief Obtained as to IAM |
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(e) | PBGC’s Commencement of Involuntary Termination Actions Regarding the Ground Plan and AFA’s Notice to Terminate AFA 2005 Restructuring Agreement |
(f) | The Debtor’s Global Settlement with PBGC and Termination of the Flight Attendant and MAPC Pension Plans |
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(g) | The Debtors’ AMFA Agreement |
16 | In addition, AMFA filed a notice of appeal concerning the PBGC Settlement Order for the limited purpose of challenging the March 11 termination date for the Ground Plan. This appeal, however, was subsequently dismissed by agreement of the parties. |
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(h) | The Debtors’ IAM Agreement |
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17 | All of the 2005 Restructuring Agreements also reduced represented employees’ participation in the Debtors Success Sharing Program. At targeted levels of performance, these changes reduce the Debtors’ costs by approximately $100 million annually. |
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18 | Nothing in this Disclosure Statement constitutes a commitment by United as to the number of rejections or abandonments that will occur prior to substantial consummation of the Plan or a commitment as to the projected size of its aircraft fleet as of the effective date of the Plan or for any period thereafter. | |
19 | Approximately 17 aircraft from the Auction Pool Aircraft that were financed through private transactions ultimately migrated to the Public Debt Aircraft, largely because of cross-holdings between various transactions. |
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(i) | Antitrust Litigation |
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(ii) | Section 365(d)(10) Litigation |
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(iii) | Global Settlement with PDG |
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• | revised payment schedules for each transaction; | ||
• | deferral of remedies by the PDG and suspension of any pending § 1110(c) demands; | ||
• | restructuring of the prepetition agreements governing the restructured transactions; | ||
• | the Debtors’ agreement not to reject leases of or abandon any additional Public Debt Aircraft (45 already have been rejected or abandoned and 7 repossessed); | ||
• | settlement and release of all PDG Administrative Claims (whether under Code § § 362, 363, 365, 503, 506, 507, or 1110 or otherwise), including all Claims asserted in the 365(d)(10) Motion and the antitrust litigation, in consideration for: |
— | the rates paid by the Debtors under the PDG Settlement; | ||
— | an aggregate additional payment of $65 million to be shared solely among the pre-1997 Public Debt Aircraft transactions (as determined by the PDG);20 | ||
— | additional principal and interest payments made in the post-1997 EETCs; and | ||
— | subject to and in accordance with the PBGC Settlement Order, the Debtors directing PBGC to assign for the benefit of (and allocated among) the pre-1997 PDG transactions (as determined by the controlling holders of those transactions) $0.50 of each dollar of value derived from 45% of PBGC’s unfunded benefit liability claim in an aggregate amount up to, but in no event to exceed, $100 million (the “PBGC Claim Proceeds”), with no guarantee by the Debtors of the proceeds actually obtained from PBGC’s claim and no obligation to top-off the actual PBGC Claim Proceeds realized under the settlement if less than $100 million; |
20 | The Debtors and the trustees for pre-1997 non-restructured transactions in the PDG (those with no remaining aircraft operated by the Debtors) have entered into a letter agreement dated as of August 5, 2005, whereby parties to such transactions have agreed to resolve the issue of the allocation described in the letter agreement among themselves and without any involvement by the Debtors. |
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• | settlement of the PDG’s general Unsecured Claims in the aggregate amount of approximately $3.1 billion, other than the PDG’s Unsecured Claims under the 1997-EETC transaction; | ||
• | payment by the Debtors of all reasonable costs, fees, and expenses of the PDG, including those of their counsel and technical, financial and other professional advisors; | ||
• | performance of certain maintenance obligations (per a detailed schedule) by the Debtors and the posting of security by the Debtors if they default on such maintenance obligations (along with the granting of a super-priority Administrative Claim in the amount of the cost of such unperformed obligations); | ||
• | conforming the rates paid on 1110(a) aircraft with the rates under the PDG Settlement; | ||
• | amending the Adequate Protection Stipulations to conform with the terms of the PDG Settlement in certain respects; | ||
• | the purchase of six of the Public Debt Aircraft; and | ||
• | a permanent release (and injunction) by United and any other entity or person of all claims or causes of action against the PDG and its agents, counsel, and advisors relating to the Public Debt Aircraft transactions and the settlements and compromises under the PDG Settlement, or the implementation thereof, including without limitation any cause of action or claims arising out of claims of inequitable conduct or antitrust violations (the “Permanent Release”). |
(iv) | 1997-1 EETCs |
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(i) | Series 2001A-1 Bonds and Series 2001A-2 Bonds. Holders of the Series 2001A-1 Bonds and the Series 2001A-2 Bonds as of January 7, 2005 are given two options for treatment under the Plan. The election, which will be made on the ballot for voting on the Plan, may be made with respect to all or any portion of a holder’s Series 2001A-1 Bonds or Series 2001A-2 Bonds. By selecting one of the following options, holders may elect to receive either a cash payment or New UAL O’Hare Bonds. |
(a) | Option A. A holder electing Option A (or a holder that (i) fails to elect either Option A or Option B, or (ii) elects Option B but fails to tender its pro rata portion of the Note Purchase, as described below in the section titled “Note Purchase,” as that term is defined in the Chicago Municipal Bond Settlement Agreement) will receive a cash payment of up to $.58 per dollar in principal amount held of the Series 2001A-1 Bonds and Series 2001A-2 Bonds. The cash payment will come from the construction and capitalized interest funds for the Series 2001A-1 Bonds and the Series 2001A-2 Bonds, funds from a note purchase payment to be made by holders of Chicago Municipal Bonds electing Option B, and a first priority claim to a pooling trust that will be funded with distributions made by United on certain claims with respect to the Chicago Municipal Bonds, which pooling trust is described in more detail below in the section titled “Pooling Agreement.” While the parties to the Chicago Municipal Bond Settlement Agreement anticipate that these funds will be sufficient to permit a cash distribution of 58 cents for every one dollar of principal amount held of the Series 2001A-1 Bonds and Series 2001A-2 Bonds, there can be no assurance that these funds will be sufficient to permit such a distribution. | ||
(b) | Option B. A holder electing Option B will receive its pro rata share of approximately $48,666,000 in principal amount of New UAL O’Hare Bonds in an amount up to $.60 per dollar in principal amount of the Series 2001A-1 Bonds and Series 2001A-2 Bonds held by such electing holder. The $.60 amount is subject to reduction in the event of an oversubscription, as described in more detail below in the section titled “Over/Undersubscription for New UAL O’Hare Bonds.” The terms of the New UAL O’Hare Bonds are set forth in more detail below in the section titled “New UAL O’Hare Bonds.” Any holder choosing Option B must tender to United (or its agent) a pro rata share of the Note Purchase pursuant to instructions contained in the Ballot for voting on the Plan. | ||
(c) | The unsecured deficiency claim of holders of the Series 2001A-1 Bonds and 2001A-2 Bonds will be deposited by United into a trust formed under a pooling agreement for reallocation and distribution pursuant to the terms of the pooling agreement, as described in more detail below in the section titled “Pooling Agreement.” |
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(ii) | Series 2000A Bonds. Holders of the Series 2000A Bonds are not entitled to elect a treatment under the Plan. Rather, all holders of the Series 2000A Bonds as of January 7, 2005 will receive a combination of: (i) a pro rata cash distribution of the construction, redemption and bond funds associated with the Series 2000A Bonds; (ii) New UAL Common Stock; and (iii) New UAL O’Hare Bonds in the principal amount of approximately $9,216,000. | ||
(iii) | Series 1999A Bonds, Series 1999B Bonds, Series 2001B Bonds and Series 2001C Bonds. Holders of the Series 1999A Bonds, Series 1999B Bonds, Series 2001B Bonds and Series 2001C Bonds as of January 7, 2005 are given two options for treatment under the Plan. The election, which will be made on the Ballot for voting on the Plan, may be made with respect to all or any portion of a holder’s Series 1999A Bonds, Series 1999B Bonds, Series 2001B Bonds and Series 2001C Bonds. By selecting one of the following options, holders may elect to receive either New UAL O’Hare Bonds or New UAL Common Stock (holders of the Series 1999A Bonds, Series 1999B Bonds, Series 2001B Bonds and Series 2001C Bonds are not given the option of receiving a cash distribution because, unlike the Series 2000A Bonds, Series 2001A-1 Bonds and Series 2001A-2 Bonds, there were no construction funds, interest reserve funds, or any other funds associated with those bonds on or after the Petition Date). |
(a) | Option A. A holder electing Option A (or a holder that (i) fails to elect either Option A or Option B, or (ii) elects Option B but fails to tender its pro rata portion of the Note Purchase, as described below in the section titled “Note Purchase”) will receive New UAL Common Stock. | ||
(b) | Option B. A holder electing Option B will receive its pro rata share of approximately $86,570,000 in principal amount of the New UAL O’Hare Bonds in an amount up to $.60 per dollar in principal amount of the Series 1999A Bonds, Series 1999B Bonds, Series 2001B Bonds and Series 2001C Bonds held by such holder. The $.60 amount is subject to reduction in the event of an oversubscription, as described in more detail below in the section titled “Over/Undersubscription for New UAL O’Hare Bonds.” The terms of the New UAL O’Hare Bonds are set forth in more detail below in the section titled “New UAL O’Hare Bonds.” Any holder choosing Option B must tender to United (or its agent) a pro rata share of the Note Purchase pursuant to instructions contained in the Ballot for voting on the Plan. | ||
(c) | The unsecured deficiency claim of a holder of the Series 1999A Bonds, Series 1999B Bonds, Series 2001B Bonds and Series 2001C Bonds making the Option B election will be deposited by United into a trust formed under a pooling agreement for reallocation and distribution pursuant to the terms of the pooling agreement, as described in more detail below in the section titled “Pooling Agreement.” |
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(iv) | Other Material Provisions of the Chicago Municipal Bond Settlement Agreement. In addition to the foregoing, there are several other material terms of the Chicago Municipal Bond Settlement Agreement: (1) in exchange for the foregoing treatment under the Plan, the indenture trustees for the Chicago Municipal Bonds and the bondholder parties to the Chicago Municipal Bond Settlement Agreement, solely in their capacities as trustees for or holders of the Chicago Municipal Bonds, agreed,inter alia, not to (a) take any action against United to declare a default or terminate or pursue a remedy against United under the Airport Use Agreement, including Section 27.08, (b) object to or take any action that is inconsistent with the approval by the Bankruptcy Court of any assumption of the Airport Use Agreement, or (c) take any action against United to compel payment by United of any payments due or payable under any of the Chicago Municipal Bond Agreements; (2) the Chicago Municipal Bond Settlement Agreement preserves the right of holders of the Chicago Municipal Bonds (other than those designated holders that are signatories of the Chicago Municipal Bond Settlement Agreement) to object to the Plan; (3) United agreed to pay the reasonable and actual fees and expenses of the indenture trustees for the Chicago Municipal Bonds and the bondholders that are parties to the Chicago Municipal Bond Settlement Agreement. United has paid such fees and expenses through February 15, 2005. United will make a further payment of reasonable and actual fees and expenses that accrue from February 16, 2005 through the Effective Date; and (4) any claims that the indenture trustees or holders of the Chicago Municipal Bonds may have against the City of Chicago were expressly preserved by the Chicago Municipal Bond Settlement Agreement and the indenture trustees or holders of the bonds may pursue such claims to the extent that United would not be required to indemnify the City of Chicago on account thereof, subject to certain exceptions. | ||
(v) | Note Purchase. Under the terms of the Chicago Municipal Bond Settlement Agreement, those holders that elect to receive New UAL O’Hare Bonds (i.e.those holders that elect Option B) are required to fund a share of the purchase of $5,193,114 of the New UAL O’Hare Bonds pursuant to a Note Purchase Agreement between United and Stark. | ||
(vi) | Over/Undersubscription for New UAL O’Hare Bonds. The Chicago Municipal Bond Settlement Agreement provides mechanisms for dealing with the situations where (i) too many holders of the Chicago Municipal Bonds elect Option B to allow holders electing Option B to receive $.60 in New UAL O’Hare Bonds per dollar in principal amount of the Chicago Municipal Bonds held by such holder, and (ii) not enough holders of the Chicago Municipal Bonds elect Option B, such that holders of the Chicago Municipal Bonds would receive greater than $.60 in New UAL O’Hare Bonds per dollar in principal amount of the Chicago Municipal Bonds held by such holder. In the former situation (an oversubscription), the amount of New UAL O’Hare Bonds holders will receive will be reduced on a pro rata basis. In the latter situation (an undersubscription), the excess New UAL O’Hare Bonds will be |
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deposited into the trust formed under the pooling agreement and distributed as discussed below. Holders of the Chicago Municipal Bonds should consult the Chicago Municipal Bond Settlement Agreement for more detail on the operation of this provision. The provisions in this paragraph do not apply to the Series 2000A Bondholders, who do not have an election. | |||
(vii) | Pooling Agreement. Certain distributions that otherwise would have been made directly to holders of the Chicago Municipal Bonds will instead be deposited into a trust established under a pooling agreement and reallocated to holders of the Chicago Municipal Bonds as set forth in the Chicago Municipal Bond Settlement Agreement. These distributions include the distributions on the deficiency claims of holders of the Series 2001A-1 Bonds and Series 2001A-2 Bonds, the distributions on the deficiency claims of the holders of the Series 1999A Bonds, Series 1999B Bonds, Series 2001B Bonds and Series 2001C Bonds that elect Option B, and any New UAL O’Hare Bonds that are not distributed to holders choosing Option B as a result of an undersubscription. The assets of the trust established under the pooling agreement (other than any excess of the New UAL O’Hare Bonds resulting from an undersubscription from the Series 1999A Bonds, Series 1999B Bonds, Series 2001B Bonds, and Series 20001C Bonds, which will be distributed to the holders of those Bonds electing Option A) will be liquidated and distributed to the holders of the Series 2001A-1 and Series 2001A-2 Bonds electing Option A, to the extent necessary to result in a $.58 distribution to such holders after application of construction and reserve funds and the funds realized from the note purchase, and thereafter any remaining assets will be distributed in kind to the holders of the Series 1999A Bonds, Series 1999B Bonds, Series 2001B Bonds and Series 2001C Bonds electing Option A, all as more fully set forth in the Chicago Municipal Bond Settlement Agreement and the Pooling Agreement. | ||
(viii) | New UAL O’Hare Bonds. The Chicago Municipal Bond Settlement Agreement provides that United will issue $149,646,114 in New UAL O’Hare Bonds, to be distributed as discussed above, on terms sufficient to ensure that such securities trade at par. |
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• | By Agreed Order entered by the Bankruptcy Court on May 23, 2003, the Bankruptcy Court lifted the automatic stay with respect to approximately $10,701,075.91 held by the trustee in the Series 1997 reserve account and $1,027,169.12 in the Series 1997 bond fund. |
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• | By Agreed Order entered by the Bankruptcy Court on June 20, 2003, the Bankruptcy Court lifted the automatic stay with respect to approximately $1,123,717.30 held by the trustee in the Series 2001 bond fund. | ||
• | By Agreed Order entered by the Bankruptcy Court on September 11, 2003, the Bankruptcy Court lifted the automatic stay with respect to all remaining monies held by the trustee in the 1997 construction fund, except $4,891,600.00 (the “1997 Disputed Amounts”). The 1997 Disputed Amounts remain in the construction fund. | ||
• | By Agreed Order entered on November 21, 2003, the Bankruptcy Court the Bankruptcy Court lifted the automatic stay with respect to all remaining monies held by the trustee in the 2001 construction fund, except for $1,455,465.28 (the “2001 Disputed Amounts”), conditioned upon either United or the trustee filing a complaint for declaratory relief to determine the parties rights as to the 2001 Disputed Amounts. |
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21 | Pursuant to an agreement for transfer of leasehold interest dated December 3, 2004 with AMB Covina MIA Cargo Center, LLC (“AMB Covina”), approved by the Bankruptcy Court on December 17, 2004, as amended as of January 7, 2005, and approved by the Bankruptcy Court on January 26, 2005, United assigned its interest in the development lease (which governs the lease of the land upon which United constructed a cargo facility and GSE facility using the proceeds of the Series 2000 Bonds) to AMB Covina free and clear of the Series 2000 Bonds. |
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SUMMARY OF THE PLAN OF REORGANIZATION
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Debtor | Subplan | |
UAL Corporation | 1 | |
United Air Lines, Inc. | 2 | |
Air Wisconsin, Inc. | 3 | |
Air Wis Services, Inc. | 4 | |
Ameniti Travel Clubs, Inc. | 5 | |
BizJet Charter, Inc. | 6 | |
BizJet Fractional, Inc. | 7 | |
BizJet Services, Inc. | 8 | |
Cybergold, Inc. | 9 | |
Domicile Management Services, Inc. | 10 | |
Four Star Leasing, Inc. | 11 | |
itarget.com, inc. | 12 | |
Kion Leasing, Inc. | 13 | |
Mileage Plus Holdings, Inc. | 14 | |
Mileage Plus Marketing, Inc. | 15 | |
Mileage Plus, Inc. | 16 | |
MyPoints Offline Services, Inc. | 17 | |
MyPoints.com, Inc. | 18 | |
Premier Meeting and Travel Services, Inc. | 19 | |
UAL Benefits Management Inc. | 20 | |
UAL Company Services, Inc. | 21 | |
UAL Loyalty Services, LLC | 22 | |
United Aviation Fuels Corporation | 23 | |
United BizJet Holdings, Inc. | 24 | |
United Cogen, Inc. | 25 | |
United GHS Inc. | 26 | |
United Vacations, Inc. | 27 | |
United Worldwide Corporation | 28 |
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(i) | Class 1A—DIP Facility Claims (Unimpaired) |
(ii) | Class 1B-1— Secured Aircraft Claims (Unimpaired) |
(a) | The Allowed Class 1B-1 Claim shall be Reinstated as an obligation of Reorganized UAL; | ||
(b) | The Allowed Class 1B-1 Claim shall receive such treatment as to which UAL or Reorganized UAL and the Secured Aircraft Creditor shall have agreed in writing; | ||
(c) | UAL shall surrender all collateral securing the Secured Aircraft Claim to the Secured Aircraft Creditor, without representation or warranty by, or recourse against the Debtors or the Reorganized Debtors; or |
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(d) | The Allowed Class 1B-1 Claim shall be treated in any other manner so that such Secured Aircraft Claim shall otherwise be rendered Unimpaired pursuant to Section 1124 of the Bankruptcy Code. |
(iii) | Class 1B-2—Other Secured Claims (Unimpaired) |
(a) | The Allowed Class 1B-2 Claim shall be Reinstated as an obligation of Reorganized UAL; | ||
(b) | The Distribution Agent shall pay the Allowed Class 1B-2 Claim to the extent that the Allowed Class 1B-2 Claim is an Allowed Secured Claim, in full in Cash on the Effective Date, or as soon as reasonably practicable thereafter; | ||
(c) | UAL shall surrender all collateral securing such Claim to the Holder thereof, without representation or warranty by or recourse against the Debtors or the Reorganized Debtors; or | ||
(d) | The Allowed Class 1B-2 Claim shall be treated in any other manner so that such Claim shall otherwise be rendered Unimpaired pursuant to Section 1124 of the Bankruptcy Code. |
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(a) | Cash equal to the amount of such Allowed Class 1C Claim; or | ||
(b) | Treatment in any other manner so that such Allowed Class 1C Claim shall otherwise be rendered Unimpaired pursuant to Section 1124 of the Bankruptcy Code. |
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(a) | The Allowed Class 2B-1 Claim shall be Reinstated as an obligation of Reorganized United; | ||
(b) | The Allowed Class 2B-1 Claim shall receive such treatment as to which United or Reorganized United and the Secured Aircraft Creditor shall have agreed in writing; | ||
(c) | United shall surrender all collateral securing the Secured Aircraft Claim to the Secured Aircraft Creditor, without representation or warranty by, or recourse against the Debtors or the Reorganized Debtors; or | ||
(d) | The Allowed Class 2B-1 Claim shall be treated in any other manner so that such Secured Aircraft Claim shall otherwise be rendered Unimpaired pursuant to Section 1124 of the Bankruptcy Code. |
(a) | The Allowed Class 2B-2 Claim shall be Reinstated as an obligation of Reorganized United; | ||
(b) | The Distribution Agent shall pay the Allowed Class 2B-2 Claim to the extent that the Allowed Class 2B-2 Claim is an Allowed Secured Claim, in full in Cash on the Effective Date or as soon as reasonably practicable thereafter; | ||
(c) | United shall surrender all collateral securing such Claim to the Holder thereof, without representation or warranty, by or recourse against the Debtors or the Reorganized Debtors; or |
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(d) | The Allowed Class 2B-2 Claim shall be treated in any other manner so that such Claim shall otherwise be rendered Unimpaired pursuant to Section 1124 of the Bankruptcy Code. |
(a) | Cash equal to the amount of such Allowed Class 2C Claim; or | ||
(b) | Treatment in any other manner so that such Allowed Class 2C Claim shall otherwise be rendered Unimpaired pursuant to Section 1124 of the Bankruptcy Code. |
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(a) | The Allowed Class 3B-1 Claim shall be Reinstated as an obligation of Reorganized Air Wisconsin; | ||
(b) | The Allowed Class 3B-1 Claim shall receive such treatment as to which Air Wisconsin or Reorganized Air Wisconsin and the Secured Aircraft Creditor shall have agreed in writing; |
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(c) | Air Wisconsin shall surrender all collateral securing the Secured Aircraft Claim to the Secured Aircraft Creditor, without representation or warranty by, or recourse against the Debtors or the Reorganized Debtors; or | ||
(d) | The Allowed Class 3B-1 Claim shall be treated in any other manner so that such Secured Aircraft Claim shall otherwise be rendered Unimpaired pursuant to Section 1123 of the Bankruptcy Code. |
(a) | The Allowed Class 3B-2 Claim shall be Reinstated as an obligation of Reorganized Air Wisconsin; | ||
(b) | The Distribution Agent shall pay the Allowed Class 3B-2 Claim to the extent that the Allowed Class 3B-2 Claim is an Allowed Secured Claim, in full in Cash on the Effective Date or as soon as reasonably practicable thereafter; | ||
(c) | Air Wisconsin shall surrender all collateral securing such Claim to the Holder thereof, without representation or warranty by, or recourse against the Debtors or the Reorganized Debtors; or | ||
(d) | The Allowed Class 3B-2 Claim shall be treated in any other manner so that such Claim shall otherwise be rendered Unimpaired pursuant to Section 1124 of the Bankruptcy Code. |
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(a) | Cash equal to the amount of such Allowed Class 3C Claim; or | ||
(b) | Treatment in any other manner so that such Allowed Class 3C Claim shall otherwise be rendered Unimpaired pursuant to Section 1124 of the Bankruptcy Code. |
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(a) | The Allowed Claim shall be Reinstated as an obligation of the respective Reorganized Debtor; | ||
(b) | The Distribution Agent shall pay the Allowed Claim to the extent that the Allowed Claim is an Allowed Secured Claim, in full in Cash on the Effective Date or as soon as reasonably practicable thereafter; | ||
(c) | The respective Debtor shall surrender all collateral securing such Claim to the Holder thereof, without representation or warranty by, or recourse against the Debtors or the Reorganized Debtors; or | ||
(d) | The Allowed Claim shall be treated in any other manner so that such Claim shall otherwise be rendered Unimpaired pursuant to Section 1124 of the Bankruptcy Code. |
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(a) | Cash equal to the amount of such Allowed Claim; or | ||
(b) | Treatment in any other manner so that such Allowed Claim shall otherwise be rendered Unimpaired pursuant to Section 1124 of the Bankruptcy Code. |
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Classes | Claims and Interests | |
DIP Facility Claims | 2A, 3A, 4A, 5A, 6A, 7A, 8A, 9A, 10A, 11A, 12A, 13A, 14A, 15A, 16A, 17A, 18A, 19A, 20A, 21A, 22A, 23A, 24A, 25A, 26A, 27A, and 28A | |
Secured Aircraft Claims | 2B-1 and 3B-1 | |
Other Secured Claims | 2B-2, 3B-2, 4B, 5B, 6B, 7B, 8B, 9B, 10B, 11B, 12B, 13B, 14B, 15B, 16B, 17B, 18B, 19B, 20B, 21B, 22B, 23B, 24B, 25B, 26B, 27B, and 28B | |
Other Priority Claims | 2C, 3C, 4C, 5C, 6C, 7C, 8C, 9C, 10C, 11C, 12C, 13C, 14C, 15C, 16C, 17C, 18C, 19C, 20C, 21C, 22C, 23C, 24C, 25C, 26C, 27C, and 28C | |
Unsecured Convenience Class Claims | 2D-1, 3D, 4D, 5D, 6D, 7D, 8D, 9D, 10D, 11D, 12D, 13D, 14D, 15D, 16D, 17D, 18D, 19D, 20D, 21D, 22D, 23D, 24D, 25D, 26D, 27D, and 28D |
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Classes | Claims and Interests | |
Unsecured Retiree Convenience Class Claims | 2D-2 | |
Unsecured Retained Aircraft Claims | 2E-1 and 3E-1 | |
Unsecured Rejected Aircraft Claims | 2E-2 and 3E-2 | |
Unsecured PBGC Claim | 2E-3 | |
Unsecured Chicago Municipal Bond Claim | 2E-4 | |
Unsecured Public Debt Aircraft Claims | 2E-5 | |
Other Unsecured Claims | 2E-6, 3E-3, 4E, 5E, 6E, 7E, 8E, 9E, 10E, 11E, 12E, 13E, 14E, 15E, 16E, 17E, 18E, 19E, 20E, 21E, 22E, 23E, 24E, 25E, 26E, 27E, and 28E | |
Common Stock Interests | 2H, 3H, 4H, 5H, 6H, 7H, 8H, 9H, 10H, 11H, 12H, 13H, 14H, 15H, 16H, 17H, 18H, 19H, 20H, 21H, 22H, 23H, 24H, 25H, 26H, 27H, and 28H | |
Subordinated Securities Claims | 2I |
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(a) | The Plan Oversight Committee shall consist of three members who are unsecured creditors of the Debtors, selected by the Creditors’ Committee. The Creditors’ Committee shall notify the Debtors, in writing, of the identities of the three members of the Plan Oversight Committee at least five (5) business days prior to the Confirmation Hearing. | ||
(b) | In the event any member of the Plan Oversight Committee assigns all or substantially all of its Claim or releases the Debtors from any further distribution on its Claim, such assignment or release shall constitute the resignation by such member from the Plan Oversight Committee, unless otherwise agreed to by the Reorganized Debtors and each remaining member of the Plan Oversight Committee. In the event of a resignation or removal of a member of the Plan Oversight Committee for any reason, a replacement shall be designated by the remaining members of |
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the Plan Oversight Committee. If the Reorganized Debtors object to the selection of the initial or replacement members of the New Committee, they may apply to the Bankruptcy Court for appropriate relief, and pending a determination by the Bankruptcy Court, the proposed members shall not be given access to the confidential or proprietary information concerning the Reorganized Debtors. |
(a) | any appeal from or motion related to the Confirmation Order; | ||
(b) | matters related to proposed modifications or amendments to the Plan; | ||
(c) | all applications for allowance of compensation to professional persons; | ||
(d) | any action to enforce, implement or interpret the Plan; | ||
(e) | any claim objection to the extent the Committee has objected to such claim pursuant to Article XVI.e of the Plan; and | ||
(f) | such other matters as may be agreed upon in advance and in writing by the Reorganized Debtors in their sole and absolute discretion and the Plan Oversight Committee. |
(a) | The Reorganized Debtors shall periodically report to and consult with the Plan Oversight Committee concerning: |
(1) | the status of reconciliations, objections, resolutions, and settlement of claims (including without limitation administrative and cure claims) and procedures therefor; | ||
(2) | reserves established on account of such claims; | ||
(3) | distributions on account of such claims; and | ||
(4) | the status of any Avoidance Actions. |
(b) | The Plan Oversight Committee may request that the Reorganized Debtors object to any particular Claim with a face amount in |
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excess of $1,000,000, failing which the Plan Oversight Committee, for good cause shown and after giving the Reorganized Debtors a reasonable period of time of at least 90 days and opportunity to object, may file a motion seeking to commence such an objection on behalf of the estate, and the Reorganized Debtors shall cooperate in all reasonable respects in connection with the foregoing; provided, however, that the Plan Oversight Committee shall be barred from objecting to any Claim previously settled between the Reorganized Debtors and the respective Creditor. The Plan Oversight Committee shall have no liability to any party for any action or omission to act with respect to Claims. | |||
(c) | The Reorganized Debtors shall report to and consult with the Plan Oversight Committee regarding the Reorganized Debtors’ decision to alter the treatment (i.e., from assume to reject and vice versa) of an executory contract or unexpired lease after the Confirmation Date. | ||
(d) | The rights and powers of the Plan Oversight Committee are strictly limited to those matters expressly enumerated in Article XV.D.2 and such rights and powers may only be exercised in a manner consistent with the terms and conditions set forth therein. Accordingly, nothing in Article XV.D.2 of the Plan (nor in any other section of the Plan) shall confer on the Plan Oversight Committee the right to intervene in the claims objection, avoidance action, or other proceedings in any way related to the Plan or the administration of the Post-Confirmation Estate under Section 1109 of the Bankruptcy Code, Bankruptcy Rule 7024, or otherwise. The Plan Oversight Committee may not seek leave of court to expand its role beyond that set forth in Article XV.D.2 of the Plan without the prior written consent of the Reorganized Debtors, which may be withheld in the Reorganized Debtors’ sole and absolute discretion. |
(a) | Plan Oversight Committee Member Expense Reimbursement: The members of the Plan Oversight Committee shall serve without compensation, but they shall be reimbursed by the Reorganized Debtors for their reasonable and necessary out of pocket expenses incident to the performance of their duties within 30 days of their submission of a detailed invoice, without further order of Court. In the event that the Reorganized Debtors or the Plan Oversight Committee objects to the amount of expenses requested by a member to be reimbursed, the Reorganized Debtors shall pay any undisputed portion and the objecting party shall file an objection to the balance with the Bankruptcy Court, which shall determine the amount to be paid. |
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(b) | Professional Compensation: The Plan Oversight Committee may retain such attorneys, accountants and other professionals as are reasonable and necessary to assist the Plan Oversight Committee in the performance of its duties; provided, however, that the Plan Oversight Committee shall provide the Reorganized Debtors with five (5) business days advance notice of any such retention. Such professionals shall be compensated and reimbursed by the Reorganized Debtors for their reasonable fees and necessary out of pocket expenses that are consistent with the budget established below within 30 days of their submission of detailed invoices, without further order of Court. In the event that the Reorganized Debtors or the Plan Oversight Committee objects to the amount of fees and/or expenses sought by Committee’s professionals, the Reorganized Debtors shall pay any undisputed portion and the objecting party shall file an objection to the balance with the Bankruptcy Court, which shall determine the amount to be paid. | ||
(c) | Budget: On or before the confirmation of the Plan, and the first day of every quarter thereafter, the prospective members of the Plan Oversight Committee shall provide the Reorganized Debtors with a quarterly budget of anticipated member expenses and professional fees and expenses. Notwithstanding anything contained herein, in the event that a particular Plan Oversight Committee member’s expense reimbursement request exceeds $[___] per month, or the Plan Oversight Committee’s total professional fees and expenses exceed $[___] per month, such member and/or all such Committee professionals, as the case may be, shall provide the Reorganized Debtors with a written explanation of the reasons such fees and/or expenses exceeded the anticipated budget (together with the relevant invoice and/or expense reimbursement request), and if the Reorganized Debtors reasonably believe that such fees and/or expenses are unreasonable, they shall so inform the relevant member and/or professionals, in which case such member and/or professionals must submit the relevant invoice and/or expense reimbursement (together with its written explanation) to the Bankruptcy Court for allowance. |
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Debtors: | Counsel to Debtors and Debtors in Possession: | |
United Air Lines, Inc. | Kirkland & Ellis LLP | |
WHQLD | 200 E. Randolph Street | |
1200 East Algonquin Road | Chicago, Illinois 60601 | |
Elk Grove Village, Illinois 60007 | Attn: James H.M. Sprayregen, P.C. | |
Attn: Paul Lovejoy | Marc Kieselstein | |
Phone: (847) 700-4000 | David R. Seligman | |
Facsimile: (847) 700-4683 | David A. Agay | |
Phone: (312) 861-2000 | ||
Facsimile: (312) 861-2200 | ||
United States Trustee: | Counsel to the Debtor in Possession Lender (Citibank and JP Morgan): | |
Office of the United States Trustee | Morgan, Lewis & Bockius, LLP | |
227 West Monroe Street, Suite 3350 | 101 Park Avenue | |
Chicago, Illinois 60606 | New York, New York 10178 | |
Attn: Stephen Wolfe | Attn: Robert H. Scheibe | |
Phone: (312) 886-5785 | Jay Teitelbaum | |
Facsimile: (312) 886-5794 | Phone: (212) 309-6000 | |
Facsimile: (212) 309-6001 |
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Debtors: | Counsel to Debtors and Debtors in Possession: | |
Counsel to the Debtor in Possession Lender (CIT Group): | Official Notice and Claims Agent: | |
Schulte, Roth & Zabel | Poorman-Douglas Corporation | |
1919 Third Avenue | 10300 SW Allen Boulevard | |
New York, New York 10022 | Beaverton, Oregon 97005 | |
Attn: Robert J. Mrofka | Attn: Tina Wheelon | |
Phone: (212) 756-2000 | Phone: (503) 277-7999 | |
Facsimile: (212) 593-5955 | Facsimile: (503) 350-5230 | |
Counsel to the Debtor in Possession Lender (Citibank and JP Morgan): | Counsel to Creditors’ Committee: | |
Kaye Scholer, LLP | Sonnenschein Nath & Rosenthal | |
3 First National Plaza, Suite 4100 | 1221 Avenue of the Americas | |
70 West Madison Street | 24th Floor | |
Chicago, Illinois 60602 | New York, NY 10020 | |
Attn: Michael B. Solow | Attn: Carole Neville | |
Phone: (312) 583-2300 | Mark A. Fink | |
Facsimile: (312) 583-2360 | Phone: (212) 768-6889 | |
Facsimile: (212) 768-6800 | ||
Counsel to Creditors’ Committee: | ||
Sonnenschein Nath & Rosenthal | ||
8000 Sears Tower | ||
Chicago, Illinois 60606 | ||
Attn: Fruman Jacobson | ||
Robert E. Richards | ||
Patrick Maxcy | ||
Phone: (312) 876-8123 | ||
Facsimile: (312) 876-7934 |
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STATUTORY REQUIREMENTS FOR CONFIRMATION OF THE PLAN
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22 | No order or finding has been entered by the Bankruptcy Court estimating or otherwise fixing the amount of aggregate Allowed Claims set forth in the Liquidation Analysis. The estimate of the amount of Allowed Claims set forth in the Liquidation Analysis should not be relied on for any other purpose, including, without limitation, determination of the value of any distribution to be made on account of Allowed Claims and Interests under the Plan. |
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• | The Effective Date occurs on or about February 1, 2006. | ||
• | The Debtors have access to the New Credit Facility as of the Effective Date. | ||
• | The pro forma net debt levels of the Debtors would be approximately $11.7 billion. | ||
• | The Debtors and their subsidiaries would have an estimated $2.7 billion in unrestricted cash. |
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• | The projections used in the valuation assume that a significant portion of the Debtors net operating losses (“NOLs”) will be available to the Reorganized Debtors, although subject to limitations under U.S. federal income tax laws. | ||
• | General financial and market conditions as of the Effective Date will not differ materially from those conditions prevailing as of the date of this Disclosure Statement. |
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23 | Because the Projections assume an Effective Date of February 1, 2006, the Projections for 2006 include one month of projected results for the Debtors (January) and 11 months of projected results for the Reorganized Debtors (February through December). | |
24 | The balance sheet adjustments set forth in the Projected Fresh Start Balance Sheet in the columns captioned “Release of Escrowed Funds,” “Debt Discharge & Reinstatements,” “New Credit Facility Financing Transactions,” and “Fresh Start Adjustments” reflect the assumed effect of Confirmation of the Plan and the consummation of the transactions contemplated by the Plan, including the settlement of various liabilities and securities issuances, incurrence of new indebtedness, and cash payments as more thoroughly described in Article III of the Plan. |
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CERTAIN FACTORS TO BE CONSIDERED PRIOR TO VOTING
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CERTAIN FEDERAL INCOME TAX CONSEQUENCES
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VOTING PROCEDURES
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25 | Capitalized terms in this Article VIII that are not otherwise defined in the Disclosure Statement or Plan shall have the meanings ascribed to them in the Solicitation Procedures. |
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Debtor | Classes | |
UAL | 1D, 1E-1, 1E-2, and 1E-3 | |
United | 2D-1, 2D-2, 2E-1, 2E-2, 2E-3, 2E-4, 2E-5, and 2E-6 | |
Air Wisconsin | 3D, 3E-1, 3E-2, and 3E-3 | |
Air Wis | 4D and 4E | |
Ameniti Travel Clubs, Inc. | 5D and 5E | |
BizJet Charter | 6D and 6E | |
BizJet Fractional | 7D and 7E | |
BizJet Services | 8D and 8E | |
Cybergold | 9D and 9E | |
DMS | 10D and 10E | |
Four Star | 11D and 11E | |
Itarget | 12D and 12E | |
Kion Leasing | 13D and 13E | |
Mileage Plus Holdings | 14D and 14E | |
Mileage Plus, Inc. | 15D and 15E | |
Mileage Plus Marketing | 16D and 16E | |
MyPoints.com | 17D and 17E | |
MyPoints Offline | 18D and 18E] | |
Premier | 19D and 19E | |
UAFC | 20D and 20E | |
UAL BMI | 21D and 21E | |
UAL Company Services | 22D and 22E | |
ULS | 23D and 23E | |
United BizJet | 24D and 24E | |
United Cogen | 25D and 25E | |
United GHS | 26D and 26E | |
United Vacations | 27D and 27E | |
United Worldwide | 28D and 28E |
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(a) | all persons or entities who, on or before the Record Date, have timely filed a proof of claim or equity interest (or an untimely proof of claim which has been allowed as timely by the Court under applicable law on or before the Record Date) (i) that has not been expunged, disallowed, disqualified or suspended prior to the Record Date, and (ii) that is not the subject of a pending objection on the Record Date; |
(b) | all persons or entities listed in the Debtors’ Schedules or Amended Schedules filed with the Bankruptcy Court as holding a noncontingent, liquidated, undisputed claim or equity interest as of the Record Date, except to the extent that such claim or equity interest was expunged, disallowed, disqualified or suspended prior to the Record Date; |
(c) | the holder of any Disputed Claim (as defined in Paragraph D.6 of the Solicitation Procedures) that has been allowed to vote pursuant to a Resolution Event (as defined below) pursuant to the procedures set forth in Paragraphs D.6-D.7 of the Solicitation Procedures; |
(d) | with respect to any Beneficial Holder (as defined in the Solicitation Procedures), to the applicable record holders or Nominee (or the indenture trustee for Aircraft Debt (as defined below)), as reflected in the relevant records as of the Record Date; |
(e) | the Securities and Exchange Commission; |
(f) | the IRS; and |
(g) | the United States Attorney for the Northern District of Illinois. |
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If by U.S. Mail: | If by courier/hand delivery: | |
Poorman-Douglas Corporation | Poorman-Douglas Corporation | |
UAL Balloting | UAL Balloting | |
P.O. Box 4349 | 10300 SW Allen Boulevard | |
Portland, Oregon 97208-4349 | Beaverton, Oregon 87005 |
PLAN SUPPLEMENT
RECOMMENDATION
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Chicago, Illinois | Respectfully Submitted, | |
Dated: September 7, 2005 | ||
UAL CORPORATION (for itself and all other Debtors: UAL Loyalty Services, Inc., Ameniti Travel Clubs, Inc., Mileage Plus Holdings, Inc., Mileage Plus Marketing, Inc., MyPoints.com, Inc., Cybergold, Inc., itarget.com, inc., MyPoints Offline Services, Inc., UAL Company Services, Inc., Four Star Leasing, Inc., Air Wis Services, Inc., Air Wisconsin, Inc., Domicile Management Services, Inc., UAL Benefits Management, Inc., United Biz Jet Holdings, Inc., Biz Jet Charter, Inc., Biz Jet Fractional, Inc., Biz Jet Services, Inc., United Air Lines, Inc., Kion Leasing, Inc., Premier Meeting and Travel Services, Inc., United Aviation Fuels Corporation, United Cogen, Inc., Mileage Plus, Inc., United GHS, Inc., United Worldwide Corporation and United Vacations, Inc.) | ||
By: ________________________________________ | ||
Name: Frederic F. Brace | ||
Title: Executive Vice President and Chief Financial Officer | ||
James H.M. Sprayregen, P.C. (ARDC No. 6190206) |
Marc Kieselstein, P.C. (ARDC No. 6199255) |
David R. Seligman (ARDC No. 6238064) |
David A. Agay (ARDC No. 6244314) |
Erik W. Chalut (ARDC No. 6269521) |
KIRKLAND & ELLIS LLP |
200 East Randolph Drive |
Chicago, Illinois 60601 |
(312) 861-2000 (telephone) |
(312) 861-2200 (facsimile) |
Counsel for the Debtors and Debtors in Possession |
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APPENDIX A
DEBTORS’ JOINT PLAN OF REORGANIZATION
PURSUANT TO CHAPTER 11 OF THE UNITED STATES BANKRUPTCY CODE
[SEE EXHIBIT 99.2 TO THIS FORM 8-K]
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1 | Each of the Debtors and Non-Debtor Affiliates, as members of the UAL “controlled group,” would be jointly and severally liable for PBGC’s claims for unfunded benefits upon termination of the Debtors’ defined benefit pension plans.See29 U.S.C.§ 1301(a)(14); 26 U.S.C.§ 1563(a) (entities are in the same “controlled group” if such entities are part of a chain of corporations, or unincorporated entities engaged in a trade or business, connected by common ownership of 80% or more). |
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1. | DIP Repayment.In a liquidation, the Debtors’ debtor-in-possession lenders (the “DIP Lenders”) would have a senior secured and joint and several superpriority claim (the “DIP Claim”) against each of the Debtors for the outstanding balance of the debtor’s postpetition credit facility (the “DIP Facility”). The Liquidation Analyses assume that the DIP Lenders will satisfy the DIP Claim from the Debtors’ liquidity pool accounts (the “Liquidity Pool”) maintained with the DIP Lenders prior to the Trustee’s use of the Liquidity Pool to satisfy the Claims of the Debtors’ other creditors. In the Non-Consolidated Liquidation Analyses, the remaining cash and cash equivalents (collectively, “Cash”) in the Liquidity Pool after satisfaction of the DIP Claim is allocated to each Debtor in accordance with the percentage of Cash attributed to each Debtor in the Debtors’ books and records.3 For purposes of the Non-Consolidated Liquidation Analyses, any Cash accounts not maintained with the DIP Lenders are assumed to be property of the bankruptcy estates of the individual Debtors holding interests in any such accounts and are not shared with other Debtors. |
2 | See29 U.S.C.§1368(a) (allowing PBGC to assert lien against members of controlled group for unfunded pension liabilities upon plan’s termination). |
3 | For example, the Debtors’ books and records allocate 32.52% of Cash in the Liquidity Pool to United Air Lines, Inc. (“United”). Thus, after repayment of the DIP Claim, United has $222,822,649 in Cash (not including short-term investments) available to satisfy claims in a Non-Consolidated liquidation. |
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2. | Cash and Short-Term Investments.Cash and Short-Term Investments include remaining Cash in the Liquidity Pool after satisfaction of the DIP Claim (allocated to each Debtor in accordance with the percentage of Cash attributed to each Debtor in the Debtors’ books and records) and other domestic and foreign bank accounts maintained by the Debtors, including overnight investment of funds in foreign money market accounts. In the United Non-Consolidated Liquidation Analysis and the Consolidated Liquidation Analyses, Cash set aside to satisfy certain federal, state, and local trust fund tax liabilities is assumed offset by such liabilities and is thus not reflected in the Debtors’ realization of assets for this Line Item. The Liquidation Analyses otherwise assume a 100% realization rate for Cash and Short-Term Investments based on the liquidity of these assets. |
3. | Restricted Cash.Restricted Cash primarily includes cash and/or security deposits posted with third parties on account of various obligations, including workers’ compensation claims, claims of credit card processors, claims asserted by counterparties to fuel hedge contracts, claims of airport authorities, and miscellaneous ticket and vacation deposit claims. |
4. | Accounts Receivable.Accounts Receivable, which include amounts owed to the Debtors by various parties, are categorized into three main sub-groups: “traffic |
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5. | Intercompany Receivables.Intercompany Receivables are the net Intercompany Claims owed to a respective Debtor by another Debtor or Non-Debtor Affiliate. |
4 | For example, traffic receivables are offset against unused post-petition passenger ticket obligations. |
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6. | Aircraft Fuel Inventory.Aircraft Fuel Inventory includes the Debtors’ inventory of jet and ground fuel. Jet and ground fuel is assumed to be re-salable at or near market value. As of June 30, 2005, the Debtors carried on average approximately 7-10 days of fuel inventory at both United and UAFC. For purposes of the Liquidation Analyses, it is assumed that fuel pricing at the time of realization is consistent with the purchase price reflected in the Debtors’ accounting records. The Liquidation Analyses estimate a realization rate of 98% of book value for fuel, after netting a 2% transaction fee that the Trustee is assumed to have to pay in a liquidation. |
7. | Prepaid Expenses and Other Current Assets.Prepaid Expenses and Other Current Assets primarily include purchase commitments under fuel supply agreements, credit card fees paid to agencies for passenger tickets purchased but not yet flown, travel agency commissions, insurance, rent, and taxes. |
8. | Flight Equipment.Flight Equipment includes all aircraft equipment,e.g., aircraft, spare engines, spare parts and rotables, leasehold improvements on leased aircraft, deposits for aircraft, and prepayments on aircraft purchase contracts. After repayment of the DIP Facility in a liquidation, the Debtors expect to own certain Flight Equipment, including aircraft previously encumbered under the DIP Facility (the “Unencumbered Aircraft”), as well as an inventory of spare engines, rotables, and spare parts. |
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9. | Other Property and Equipment.Other Property and Equipment includes land, buildings, ground equipment, flight simulators, miscellaneous other equipment (including furniture, fixtures and office equipment), leasehold improvements on ground equipment, and leasehold improvements on real property. |
5 | See11 U.S.C.§ 506(a) (bifurcating claims into secured and unsecured portions based on a valuation of collateral). |
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10. | Intangible Assets.Intangible Assets include gates, arrival/departure slots, foreign route authorities, customer databases, tradenames, and trademarks. The Liquidation Analyses rely on the Debtors’ extensive industry knowledge and third-party appraisals to determine the aggregate realization for customer databases and trade names. In particular, the Liquidation Analyses assume, based on a third-party appraisal, that the MileagePlus customer list has a recoverable value of $75 million in a liquidation. The Non-Consolidated Liquidation Analyses assume the MileagePlus customer list is solely an asset of ULS and thus assigns such value to ULS’s estate. Given that the MileagePlus customer list was developed by ULS, there is no net book value on ULS’s books and records as of June 30, 2005 for this asset, resulting in significant recovery percentages for this Line Item in the ULS Non-Consolidated Liquidation Analysis. |
11. | Investments and Other Assets.Investments and Other Assets primarily consist of the Debtors’ investments in certain joint ventures, long-term restricted cash, |
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12. | Preference and Avoidance Payment Recovery.Having operated in Chapter 11 for more than two and a half years, the Debtors have substantially completed their recovery of preferential transfers. For the most part, preferential recoveries have been converted to Cash and are reflected in Line Item 1 in the Liquidation Analyses. As of June 30, 2005, only approximately $8 million remained to be collected on account of preferences and other avoidance actions. As of July 31, 2005, the Debtors already recovered over $7 million of this balance. The Debtors estimate a nominal recovery of less than $1 million with respect to pending preference actions. In the Non-Consolidated Liquidation Analyses, United is the only debtor for which a preference recovery is reflected. |
13. | Trustee Fees.Trustee Fees include all fees to be paid for the Chapter 7 Trustee’s services in a liquidation in accordance with the fee structure under Section 326 of the Bankruptcy Code. Based on certain benchmarks derived from the Debtors’ analysis of such rates in other mega-Chapter 11 cases, the Liquidation Analyses generally allocate Trustee Fees to each of the Debtors at a rate of approximately 3.0% of estimated liquidation proceeds, excluding Cash and any of the Debtors’ recovery on Intercompany Receivables. However, based on the same benchmarks, Trustee Fees are slightly discounted to 2.2% of estimated liquidation proceeds, excluding Cash and Intercompany Receivables, in the United Non-Consolidated Analysis and the Consolidated Liquidation Analysis. |
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14. | Counsel for the Trustee and Related Professional Fees.Counsel for the Trustee and Related Professional Fees include an estimate of fees and expenses incurred by the Trustee’s legal and other professionals associated with, among other things, liquidation and realization of assets, the wind-down of the Debtors’ Estates, and Claims reconciliation. In the Consolidated Liquidation Analysis and the United Non-Consolidated Liquidation Analysis, Counsel for the Trustee and Related Professional Fees are assumed to be 1.6% of the estimated liquidation proceeds, excluding Cash and Intercompany Receivables, based on certain benchmarks derived from the Debtors’ analysis of such rates in other mega-Chapter 11 cases. Based on the same benchmarks, all other Non-Consolidated Liquidation Analyses ascribe a rate of 1.7-2.3% of the estimated liquidation proceeds, excluding Cash and Intercompany Receivables, to account for Counsel for the Trustee and Related Professional Fees. |
15. | Wind-Down Fees.Wind-Down Fees include expenses incurred during the Wind-Down Period and primarily relate to the storage and transportation of owned aircraft and flight equipment, auction fees, employee wages and benefits for personnel employed during the Wind-Down Period and general overhead costs. In determining Wind-Down Fees related to employee wages and benefits, the Liquidation Analyses account for certain reductions in workforce and payment of stay bonuses at various intervals of the Wind-Down Period. |
16. | Super-Priority Administrative Claims.Super-Priority Administrative Claims include any Claims entitled to super-priority administrative expense claim status, other than the DIP Facility Claim, including postpetition Intercompany Claims. The Consolidated Liquidation Analysis assumes that there is no realization on account of any Intercompany Claims, including Super-Priority Administrative Claims, because consolidation of the Debtors’ Estates ignores intercompany transactions. |
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17. | Secured Claims.Secured Claims include certain Secured Claims relating to Aircraft Equipment, but only to the extent of the value of the underlying collateral. In general, the allowed Secured Claim for any encumbered Aircraft Equipment is assumed to be equal to the liquidation proceeds realized from the sale of underlying aircraft collateral. Upon repossession and liquidation of such Aircraft Equipment, the secured creditors’ only remaining Claim against the Debtors’ Estates will be an unsecured deficiency claim for any shortfall from the sale of such collateral reflected in Line Item 22 (Other Unsecured Claims).See11 U.S.C. § 506(a). |
18. | Administrative Claims.Administrative Claims include Allowed Claims entitled to administrative expense priority under Section 503 of the Bankruptcy Code. Significant types of Administrative Claims include estimated unpaid post-petition employee wages and benefits, trade payables, environmental clean-up costs, accrued aircraft rent and interest, taxes, reclamation claims, claims arising under Postpetition Aircraft Agreements, the PBGC Administrative Claims (defined below), and damages under assumed or postpetition contracts and leases that the Trustee subsequently rejects or terminates. |
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19. | Priority Claims.Priority Claims include state tax Claims in the aggregate amount of approximately $57 million against United, as estimated by the Debtors. The Liquidation Analyses do not contain any estimate for any priority wage-related claims because those claims have been satisfied pursuant to the authority granted the Debtors under the Order (A) Authorizing but not Directing the Debtors to Continue to Pay Wages, Salaries and Other Compensation in the Ordinary Course of Business Including the Payment of Prepetition Obligations and (B) Authorizing but not Directing the Debtors to Continue to Maintain Their Benefit Programs in the Ordinary Course of Business Including the Payment of |
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20. | PBGC Unsecured Claims.The Liquidation Analyses assume that PBGC would assert a $9.9 billion, joint and several claim against all of the Debtors in a liquidation based on application of the discount rate set forth in PBGC’s regulations for determining the unfunded status of a terminated defined benefit pension plan.6 Although the unsecured Claims of PBGC for termination of the Debtors’ defined benefit pension plans are listed as a separate line item in the Liquidation Analyses, they are afforded the same priority as are other unsecured Claims. |
21. | Intercompany Unsecured Claims.Intercompany Unsecured Claims include all prepetition Intercompany Claims against any of the Debtors. The Consolidated Liquidation Analysis ignores Intercompany Unsecured Claims because consolidation results in the combination of all assets and liabilities of the Debtors. In the Non-Consolidated Liquidation Analyses, all pre-petition intercompany activity, net of offsets, is treated as an unsecured claim for which there is no recovery in a liquidation scenario, except for the case of ULS. |
22. | Other Unsecured Claims.Significant additional Unsecured Claims include aircraft deficiency and lease rejection Claims, prepetition trade payables, non-residential lease and executory contract rejection claims, and Claims in a Chapter 7 liquidation on account of the Section 1113 Restructuring Agreements. Significant Other Unsecured Claims consist primarily of certain UAL’s guarantees of municipal bond and aircraft-related obligations of United and Air Wisconsin, Inc. |
6 | See In re U.S. Airways Group, Inc., 303 B.R. 784 (Bankr. E.D. Va. 2003) (applying discount rate provided for in PBGC regulations to determine unfunded status of terminated defined benefit pension plan);but see In re CSC Indus., Inc., 232 F.3d 505 (6th Cir. 2001) (applying prudent investor rate to value unfunded status of terminated plan);In re CF&I Fabricators of Utah, Inc., 150 F.3d 1293 (10th Cir. 1998) (same). Application of the “prudent investor” discount rate would not affect the recovery of Holders of Unsecured Claims in the Consolidated Liquidation Analysis, and would only affect the recovery of Holders of Unsecured Claims against ULS in the Non-Consolidated Liquidation Analyses. |
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23. | Trust Originated Preferred Securities (“TOPrS”) Claims.TOPrS Claims arise from UAL’s guarantee of the TOPrS Preferred Securities or the 13.25% Junior Subordinated Debenture. TOPrS Claims are subordinate to general unsecured Claims. In the Non-Consolidated Liquidation Analysis, the TOPrS Claims are asserted against only UAL and rankpari passuwith any Intercompany claims against UAL. |
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CONSOLIDATED
HYPOTHETICAL LIQUIDATION ANALYSIS
UNAUDITED
Notes | ||||||||||||||||||||||||||
1 | DIP REPAYMENT | |||||||||||||||||||||||||
Liquidity Pool | $ | 1,591,973,081 | ||||||||||||||||||||||||
DIP Repayment | (906,814,911 | ) | ||||||||||||||||||||||||
Net Liquidity Pool | $ | 685,158,171 | ||||||||||||||||||||||||
Plus: Short Term Investments | 1,312,671 | |||||||||||||||||||||||||
Cash and Short-Term Investments | $ | 686,470,841 | ||||||||||||||||||||||||
ASSETS & ESTIMATED REALIZATION | ||||||||||||||||||||||||||
Filed Entities | Forced Liquidation Value | Orderly Liquidation Value | ||||||||||||||||||||||||
Net Book Value | Estimated | Estimated | Estimated | Estimated | ||||||||||||||||||||||
June 30, 2005 | Value | Realization Rate | Value | Realization Rate | ||||||||||||||||||||||
2 | Cash and Short-Term Investments | $ | 686,470,841 | $ | 686,470,841 | 100 | % | $ | 686,470,841 | 100 | % | |||||||||||||||
3 | Restricted Cash | 967,696,000 | 31,289,301 | 3 | % | 31,289,301 | 3 | % | ||||||||||||||||||
4 | Accounts Receivable | 1,136,355,000 | 311,445,366 | 27 | % | 314,344,167 | 28 | % | ||||||||||||||||||
5 | Intercompany Receivables | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||
6 | Aircraft Fuel Inventory | 46,179,000 | 45,255,496 | 98 | % | 45,255,496 | 98 | % | ||||||||||||||||||
7 | Prepaid Expenses and Other Current Assets | 670,034,000 | 98,800,627 | 15 | % | 108,816,143 | 16 | % | ||||||||||||||||||
8 | Flight Equipment | 11,691,143,516 | 1,124,585,000 | 10 | % | 1,592,181,000 | 14 | % | ||||||||||||||||||
9 | Other Property and Equipment | 2,639,914,484 | 324,627,723 | 12 | % | 444,679,683 | 17 | % | ||||||||||||||||||
10 | Intangible Assets | 394,865,000 | 1,843,298,950 | 467 | % | 1,858,898,950 | 471 | % | ||||||||||||||||||
11 | Investments and Other Assets | 959,123,000 | 184,451,088 | 19 | % | 188,752,165 | 20 | % | ||||||||||||||||||
12 | Preference and Avoidance Payment Recovery | — | 8,221,000 | 8,221,000 | ||||||||||||||||||||||
Total Assets/Proceeds (A) | $ | 19,191,780,841 | $ | 4,658,445,393 | 24 | % | $ | 5,278,908,747 | 28 | % | ||||||||||||||||
LIQUIDATION COSTS | ||||||||||||||||||||||||||
13 | Trustee Fees | 87,634,065 | 101,267,589 | |||||||||||||||||||||||
14 | Counsel for the Trustee and Related Professional Fees | 64,509,732 | 74,545,726 | |||||||||||||||||||||||
15 | Wind-Down Fees | 96,141,846 | 150,980,344 | |||||||||||||||||||||||
Total Liquidation Costs (B) | $ | 248,285,642 | $ | 326,793,659 | ||||||||||||||||||||||
Net Proceeds Available to Creditors (A — B) | $ | 4,410,159,752 | $ | 4,952,115,087 | ||||||||||||||||||||||
ESTIMATED RECOVERY TO CREDITORS (CLAIMS) | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Estimated Total | Estimated % of | Estimated Total | Estimated % of | |||||||||||||||||||||||
Estimated | Amount Paid to | Allowed Claim | Estimated | Amount Paid to | Allowed Claim | |||||||||||||||||||||
Notes | Allowed Claim | Creditors | Paid | Allowed Claim | Creditors | Paid | ||||||||||||||||||||
Net Proceeds Available to Creditors | $ | 4,410,159,752 | $ | 4,952,115,087 | ||||||||||||||||||||||
16 | Super-Priority Administrative Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
17 | Secured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
18 | Administrative Claims | 5,900,350,856 | 4,410,159,752 | 75 | % | 5,900,350,856 | 4,952,115,087 | 84 | % | |||||||||||||||||
19 | Priority Claims | 57,162,517 | — | 0 | % | 57,162,517 | — | 0 | % | |||||||||||||||||
Net Proceeds Available to Unsecured Creditors | — | — | ||||||||||||||||||||||||
20 | PBGC Unsecured Claims | 9,919,353,000 | — | 0.00 | % | 9,919,353,000 | — | 0.00 | % | |||||||||||||||||
21 | Intercompany Unsecured Claims | N/A | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||||
22 | Other Unsecured Claims | 29,541,109,976 | — | 0.00 | % | 27,480,343,855 | — | 0.00 | % | |||||||||||||||||
Total Unsecured Claims | $ | 39,460,462,976 | $ | — | 0.00 | % | $ | 37,399,696,855 | $ | — | 0.00 | % | ||||||||||||||
23 | TOPrS Claims | 76,850,000 | 76,850,000 | |||||||||||||||||||||||
Total Subordinated Claims | $ | 76,850,000 | $ | — | 0.00 | % | $ | 76,850,000 | $ | — | 0.00 | % | ||||||||||||||
Table of Contents
HYPOTHETICAL LIQUIDATION ANALYSIS
UNAUDITED
Notes | ||||||||||||||||||||||||||
1 | DIP REPAYMENT | |||||||||||||||||||||||||
Consolidated Liquidity Pool | $ | 1,591,973,081 | ||||||||||||||||||||||||
DIP Repayment | (906,814,911 | ) | ||||||||||||||||||||||||
Net Consolidated Liquidity Pool | 685,158,171 | |||||||||||||||||||||||||
Percentage of Liquidity Pool Allocated to United Airlines | 32.52 | % | ||||||||||||||||||||||||
United Airlines Pro-rata Share of Liquidity Pool | $ | 222,822,649 | ||||||||||||||||||||||||
Plus: Short Term Investments | 1,312,671 | |||||||||||||||||||||||||
Cash and Short-Term Investments | $ | 224,135,320 | ||||||||||||||||||||||||
ASSETS & ESTIMATED REALIZATION | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Net Book Value | Estimated | Estimated | Estimated | Estimated | ||||||||||||||||||||||
June 30, 2005 | Value | Realization Rate | Value | Realization Rate | ||||||||||||||||||||||
2 | Cash and Short-Term Investments | $ | 224,135,320 | $ | 224,135,320 | 100 | % | $ | 224,135,320 | 100 | % | |||||||||||||||
3 | Restricted Cash | 939,700,959 | 23,833,976 | 3 | % | 23,833,976 | 3 | % | ||||||||||||||||||
4 | Accounts Receivable | 1,016,052,424 | 241,384,431 | 24 | % | 241,384,431 | 24 | % | ||||||||||||||||||
5 | Intercompany Receivables | 2,739,291,998 | — | 0 | % | — | 0 | % | ||||||||||||||||||
6 | Aircraft Fuel Inventory | 27,994,175 | 27,434,291 | 98 | % | 27,434,291 | 98 | % | ||||||||||||||||||
7 | Prepaid Expenses and Other Current Assets | 523,591,592 | 67,892,919 | 13 | % | 77,880,895 | 15 | % | ||||||||||||||||||
8 | Flight Equipment | 13,037,318,220 | 1,124,585,000 | 9 | % | 1,592,181,000 | 12 | % | ||||||||||||||||||
9 | Other Property and Equipment | 1,268,115,229 | 298,695,986 | 24 | % | 417,043,772 | 33 | % | ||||||||||||||||||
10 | Intangible Assets | 371,839,021 | 1,765,898,950 | 475 | % | 1,780,798,950 | 479 | % | ||||||||||||||||||
11 | Investments and Other Assets | 1,601,097,944 | 178,546,548 | 11 | % | 180,232,242 | 11 | % | ||||||||||||||||||
12 | Preference and Avoidance Payment Recovery | — | 8,221,000 | 8,221,000 | ||||||||||||||||||||||
Total Assets/Proceeds (A) | $ | 21,749,136,881 | $ | 3,960,628,422 | 18 | % | $ | 4,573,145,878 | 21 | % | ||||||||||||||||
LIQUIDATION COSTS | ||||||||||||||||||||||||||
13 | Trustee Fees | 82,102,465 | 95,561,393 | |||||||||||||||||||||||
14 | Counsel for the Trustee and Related Professional Fees | 59,424,926 | 69,166,361 | |||||||||||||||||||||||
15 | Wind-Down Fees | 91,432,217 | 146,111,797 | |||||||||||||||||||||||
Total Liquidation Costs (B) | $ | 232,959,608 | 310,839,551 | |||||||||||||||||||||||
Net Proceeds Available to Creditors (A — B) | $ | 3,727,668,814 | $ | 4,262,306,327 | ||||||||||||||||||||||
ESTIMATED RECOVERY TO CREDITORS (CLAIMS) | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Estimated Total | Estimated % of | Estimated Total | Estimated % of | |||||||||||||||||||||||
Estimated | Amount Paid to | Allowed Claim | Estimated | Amount Paid to | Allowed Claim | |||||||||||||||||||||
Notes | Allowed Claim | Creditors | Paid | Allowed Claim | Creditors | Paid | ||||||||||||||||||||
Net Proceeds Available to Super-Priority I/C Creditors: | $ | 3,727,668,814 | $ | 4,262,306,327 | ||||||||||||||||||||||
16 | Plus: Receipts from Super-Priority Intercompany Claims | — | 32,780,662 | N/A | — | 36,786,012 | N/A | |||||||||||||||||||
16 | Less: Distributions for Super-Priority Intercompany Claims | 808,079,214 | 808,079,214 | 100 | % | 808,079,214 | 808,079,214 | 100 | % | |||||||||||||||||
Net Proceeds Available to Secured, Admin, and Priority Creditors: | 2,952,370,262 | 3,491,013,124 | ||||||||||||||||||||||||
17 | Secured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
18 | Administrative Claims | 4,916,207,322 | 2,952,370,262 | 60 | % | 4,916,207,322 | 3,491,013,124 | 71 | % | |||||||||||||||||
19 | Priority Claims | 57,162,517 | — | 0 | % | 57,162,517 | — | 0 | % | |||||||||||||||||
Net Proceeds Available to Unsecured Creditors | — | — | ||||||||||||||||||||||||
20 | PBGC Unsecured Claims | 9,919,353,000 | — | 0.00 | % | 9,919,353,000 | — | 0.00 | % | |||||||||||||||||
21 | Intercompany Unsecured Claims | 1,586,705,821 | — | 0.00 | % | 1,586,705,821 | — | 0.00 | % | |||||||||||||||||
22 | Other Unsecured Claims | 28,520,908,792 | — | 0.00 | % | 26,516,432,385 | — | 0.00 | % | |||||||||||||||||
Total Unsecured Claims | 40,026,967,613 | — | 0.00 | % | 38,022,491,206 | �� | — | 0.00 | % | |||||||||||||||||
Table of Contents
HYPOTHETICAL LIQUIDATION ANALYSIS
UNAUDITED
Notes | ||||||||||||||||||||||||||
1 | DIP REPAYMENT | |||||||||||||||||||||||||
Consolidated Liquidity Pool | $ | 1,591,973,081 | ||||||||||||||||||||||||
DIP Repayment | (906,814,911 | ) | ||||||||||||||||||||||||
Net Consolidated Liquidity Pool | 685,158,171 | |||||||||||||||||||||||||
Percentage of Liquidity Pool Allocated to ULS | 63.14 | % | ||||||||||||||||||||||||
ULS Pro-rata Share of Liquidity Pool | $ | 432,638,575 | ||||||||||||||||||||||||
ASSETS & ESTIMATED REALIZATION | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Net Book Value | Estimated | Estimated | Estimated | Estimated | ||||||||||||||||||||||
June 30, 2005 | Value | Realization Rate | Value | Realization Rate | ||||||||||||||||||||||
2 | Cash and Short-Term Investments | $ | 432,638,575 | $ | 432,638,575 | 100 | % | $ | 432,638,575 | 100 | % | |||||||||||||||
3 | Restricted Cash | 7,455,325 | 7,455,325 | 100 | % | 7,455,325 | 100 | % | ||||||||||||||||||
4 | Accounts Receivable | 93,289,944 | 19,351,224 | 21 | % | 19,351,224 | 21 | % | ||||||||||||||||||
5 | Intercompany Receivables | 221,527,945 | — | 0 | % | — | 0 | % | ||||||||||||||||||
6 | Aircraft Fuel Inventory | — | — | N/A | — | N/A | ||||||||||||||||||||
7 | Prepaid Expenses and Other Current Assets | 2,158,967 | 2,158,967 | 100 | % | 2,158,967 | 100 | % | ||||||||||||||||||
8 | Flight Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
9 | Other Property and Equipment | 8,482,976 | 1,696,595 | 20 | % | 3,393,191 | 40 | % | ||||||||||||||||||
10 | Intangible Assets | 1,333,333 | 75,000,000 | 5625 | % | 75,000,000 | 5625 | % | ||||||||||||||||||
11 | Investments and Other Assets | 1,773,997 | — | 0 | % | — | 0 | % | ||||||||||||||||||
12 | Preference and Avoidance Payment Recovery | — | — | — | ||||||||||||||||||||||
Total Assets/Proceeds (A) | $ | 768,661,063 | $ | 538,300,686 | 70 | % | $ | 539,997,281 | 70 | % | ||||||||||||||||
LIQUIDATION COSTS | ||||||||||||||||||||||||||
13 | Trustee Fees | 3,169,863 | 3,220,761 | |||||||||||||||||||||||
14 | Counsel for the Trustee and Related Professional Fees | 2,430,229 | 1,857,306 | |||||||||||||||||||||||
15 | Wind-Down Fees | 2,113,242 | 2,147,174 | |||||||||||||||||||||||
Total Liquidation Costs (B) | $ | 7,713,334 | $ | 7,225,241 | ||||||||||||||||||||||
Net Proceeds Available to Creditors (A — B) | $ | 530,587,352 | $ | 532,772,040 | ||||||||||||||||||||||
ESTIMATED RECOVERY TO CREDITORS (CLAIMS) | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Estimated Total | Estimated % of | Estimated Total | Estimated % of | |||||||||||||||||||||||
Estimated | Amount Paid to | Allowed Claim | Estimated | Amount Paid to | Allowed Claim | |||||||||||||||||||||
Notes | Allowed Claim | Creditors | Paid | Allowed Claim | Creditors | Paid | ||||||||||||||||||||
Net Proceeds Available to Super-Priority I/C Creditors: | $ | 530,587,352 | $ | 532,772,040 | ||||||||||||||||||||||
16 | Plus: Receipts from Super-Priority Intercompany Claims | — | 493,501,835 | N/A | — | 493,501,835 | N/A | |||||||||||||||||||
16 | Less: Distributions for Super-Priority Intercompany Claims | 4,820,927 | 4,820,927 | 100 | % | 4,820,927 | 4,820,927 | 100 | % | |||||||||||||||||
Net Proceeds Available to Secured, Admin, and Priority Claims: | 1,019,268,260 | 1,021,452,948 | ||||||||||||||||||||||||
17 | Secured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
18 | Administrative Claims | 798,552,332 | 798,552,332 | 100 | % | 719,455,242 | 719,455,242 | 100 | % | |||||||||||||||||
19 | Priority Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Net Proceeds Available to Unsecured Creditors | 220,715,928 | 301,997,707 | ||||||||||||||||||||||||
20 | PBGC Unsecured Claims | 9,919,353,000 | 205,421,677 | 2.07 | % | 9,919,353,000 | 281,071,130 | 2.83 | % | |||||||||||||||||
21 | Intercompany Unsecured Claims | 737,764,789 | 15,278,505 | 2.07 | % | 737,764,789 | 20,905,031 | 2.83 | % | |||||||||||||||||
22 | Other Unsecured Claims | 760,366 | 15,747 | 2.07 | % | 760,366 | 21,545 | 2.83 | % | |||||||||||||||||
Total Unsecured Claims | $ | 10,657,878,155 | $ | 220,715,928 | 2.07 | % | $ | 10,657,878,155 | $ | 301,997,707 | 2.83 | % | ||||||||||||||
Table of Contents
HYPOTHETICAL LIQUIDATION ANALYSIS
UNAUDITED
Notes | ||||||||||||||||||||||||||
1 | DIP REPAYMENT | |||||||||||||||||||||||||
Consolidated Liquidity Pool | $ | 1,591,973,081 | ||||||||||||||||||||||||
DIP Repayment | (906,814,911 | ) | ||||||||||||||||||||||||
Net Consolidated Liquidity Pool | 685,158,171 | |||||||||||||||||||||||||
Percentage of Liquidity Pool Allocated to UAL Corp | 0.01 | % | ||||||||||||||||||||||||
UAL Corp. Pro-rata Share of Liquidity Pool | $ | 88,927 | ||||||||||||||||||||||||
ASSETS & ESTIMATED REALIZATION | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Net Book Value | Estimated | Estimated | Estimated | Estimated | ||||||||||||||||||||||
June 30, 2005 | Value | Realization Rate | Value | Realization Rate | ||||||||||||||||||||||
2 | Cash and Short-Term Investments | $ | 88,927 | $ | 88,927 | 100 | % | $ | 88,927 | 100 | % | |||||||||||||||
3 | Restricted Cash | — | — | N/A | — | N/A | ||||||||||||||||||||
4 | Accounts Receivable | — | — | N/A | — | N/A | ||||||||||||||||||||
5 | Intercompany Receivables | 394,239,401 | — | 0 | % | — | 0 | % | ||||||||||||||||||
6 | Aircraft Fuel Inventory | — | — | N/A | — | N/A | ||||||||||||||||||||
7 | Prepaid Expenses and Other Current Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
8 | Flight Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
9 | Other Property and Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
10 | Intangible Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
11 | Investments and Other Assets | 1,007,610 | — | 0 | % | — | 0 | % | ||||||||||||||||||
12 | Preference and Avoidance Payment Recovery | — | — | — | ||||||||||||||||||||||
Total Assets/Proceeds(A) | $ | 395,335,938 | $ | 88,927 | 0 | % | $ | 88,927 | 0 | % | ||||||||||||||||
LIQUIDATION COSTS | ||||||||||||||||||||||||||
13 | Trustee Fees | — | — | |||||||||||||||||||||||
14 | Counsel for the Trustee and Related Professional Fees | — | — | |||||||||||||||||||||||
15 | Wind-Down Fees | — | — | |||||||||||||||||||||||
Total Liquidation Costs (B) | $ | — | $ | — | ||||||||||||||||||||||
Net Proceeds Available to Creditors (A — B) | $ | 88,927 | $ | 88,927 | ||||||||||||||||||||||
ESTIMATED RECOVERY TO CREDITORS (CLAIMS) | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Estimated Total | Estimated % of | Estimated Total | Estimated % of | |||||||||||||||||||||||
Estimated | Amount Paid to | Allowed Claim | Estimated | Amount Paid to | Allowed Claim | |||||||||||||||||||||
Notes | Allowed Claim | Creditors | Paid | Allowed Claim | Creditors | Paid | ||||||||||||||||||||
Net Proceeds Available to Super-Priority I/C Creditors: | $ | 88,927 | $ | 88,927 | ||||||||||||||||||||||
16 | Plus: Receipts from Super-Priority Intercompany Claims | — | 118,075,838 | N/A | — | 118,075,838 | N/A | |||||||||||||||||||
16 | Less: Distributions for Super-Priority Intercompany Claims | 44,710,670 | 44,710,670 | 100 | % | 44,710,670 | 44,710,670 | 100 | % | |||||||||||||||||
Net Proceeds Available for Secured, Admin, and Priority Creditors: | 73,454,095 | 73,454,095 | ||||||||||||||||||||||||
17 | Secured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
18 | Administrative Claims | 597,000,000 | 73,454,095 | 12 | % | 597,000,000 | 73,454,095 | 12 | % | |||||||||||||||||
19 | Priority Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
20 | Net Proceeds Available to Unsecured Creditors | — | — | |||||||||||||||||||||||
21 | PBGC Unsecured Claims | 9,919,353,000 | — | 0.00 | % | 9,919,353,000 | — | 0.00 | % | |||||||||||||||||
21 | Other Unsecured Claims | 1,033,957,679 | — | 0.00 | % | 988,306,332 | — | 0.00 | % | |||||||||||||||||
22 | Total Unsecured Claims | $ | 10,953,310,679 | $ | — | 0.00 | % | $ | 10,907,659,332 | $ | — | 0.00 | % | |||||||||||||
Intercompany Unsecured Claims | 580,520,284 | — | 0.00 | % | 580,520,284 | — | 0.00 | % | ||||||||||||||||||
23 | TOPrS Claims | 76,850,000 | — | 0.00 | % | 76,850,000 | — | 0.00 | % | |||||||||||||||||
Total Subordinated Claims | $ | 657,370,284 | $ | — | 0.00 | % | $ | 657,370,284 | $ | — | 0.00 | % | ||||||||||||||
Table of Contents
HYPOTHETICAL LIQUIDATION ANALYSIS
UNAUDITED
Notes | ||||||||||||||||||||||||||
1 | DIP REPAYMENT | |||||||||||||||||||||||||
Consolidated Cash and Short-Term Investments | $ | 1,591,973,081.27 | ||||||||||||||||||||||||
DIP Repayment | (906,814,910.73 | ) | ||||||||||||||||||||||||
Net Consolidated Cash and Short-Term Investments | 685,158,170.54 | |||||||||||||||||||||||||
Percentage of Cash Allocated to Kion Leasing | 0.00 | % | ||||||||||||||||||||||||
Kion Leasing Pro-rata Share of Cash and Short-Term Investments | $ | — | ||||||||||||||||||||||||
ASSETS & ESTIMATED REALIZATION | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Net Book Value | Estimated | Estimated | Estimated | Estimated | ||||||||||||||||||||||
June 30, 2005 | Value | Realization Rate | Value | Realization Rate | ||||||||||||||||||||||
2 | Cash and Short-Term Investments | $ | — | $ | — | N/A | $ | — | N/A | |||||||||||||||||
3 | Restricted Cash | — | — | N/A | — | N/A | ||||||||||||||||||||
4 | Accounts Receivable | 0 | — | 0 | % | — | 0 | % | ||||||||||||||||||
5 | Intercompany Receivables | 161,869,328 | — | 0 | % | — | 0 | % | ||||||||||||||||||
6 | Aircraft Fuel Inventory | — | — | N/A | — | N/A | ||||||||||||||||||||
7 | Prepaid Expenses and Other Current Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
8 | Flight Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
9 | Other Property and Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
10 | Intangible Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
11 | Investments and Other Assets | 0 | — | 0 | % | — | 0 | % | ||||||||||||||||||
12 | Preference and Avoidance Payment Recovery | — | — | — | ||||||||||||||||||||||
Total Assets/Proceeds (A) | $ | 161,869,329 | $ | — | 0 | % | $ | — | 0 | % | ||||||||||||||||
LIQUIDATION COSTS | ||||||||||||||||||||||||||
13 | Trustee Fees | — | — | |||||||||||||||||||||||
14 | Counsel for the Trustee and Related Professional Fees | — | — | |||||||||||||||||||||||
15 | Wind-Down Fees | — | — | |||||||||||||||||||||||
Total Liquidation Costs (B) | $ | — | $ | — | ||||||||||||||||||||||
Net Proceeds Available to Creditors (A — B) | $ | — | $ | — | ||||||||||||||||||||||
ESTIMATED RECOVERY TO CREDITORS (CLAIMS) | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Estimated Total | Estimated % of | Estimated Total | Estimated % of | |||||||||||||||||||||||
Estimated | Amount Paid to | Allowed Claim | Estimated | Amount Paid to | Allowed Claim | |||||||||||||||||||||
Notes | Allowed Claim | Creditors | Paid | Allowed Claim | Creditors | Paid | ||||||||||||||||||||
Net Proceeds Available to Super-Priority I/C Creditors: | $ | — | $ | — | ||||||||||||||||||||||
16 | Plus: Receipts from Super-Priority Intercompany Claims | — | 45,997,454 | N/A | — | 45,997,454 | N/A | |||||||||||||||||||
16 | Less: Distributions for Super-Priority Intercompany Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Net Proceeds Available to Secured, Admin, and Priority Creditors: | 45,997,454 | 45,997,454 | ||||||||||||||||||||||||
17 | Secured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
18 | Administrative Claims | 597,000,000 | 45,997,454 | 8 | % | 597,000,000 | 45,997,454 | 8 | % | |||||||||||||||||
19 | Priority Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Net Proceeds Available to Unsecured Creditors | — | — | ||||||||||||||||||||||||
20 | PBGC Unsecured Claims | 9,919,353,000 | — | 0.00 | % | 9,919,353,000 | — | 0.00 | % | |||||||||||||||||
21 | Intercompany Unsecured Claims | 120,286,215 | — | 0.00 | % | 120,286,215 | — | 0.00 | % | |||||||||||||||||
22 | Other Unsecured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Total Unsecured Claims | $ | 10,039,639,215 | $ | — | 0.00 | % | $ | 10,039,639,215 | $ | — | 0.00 | % | ||||||||||||||
Table of Contents
HYPOTHETICAL LIQUIDATION ANALYSIS
UNAUDITED
Notes | ||||||||||||||||||||||||||
1 | DIP REPAYMENT | |||||||||||||||||||||||||
Consolidated Cash and Short-Term Investments | $ | 1,591,973,081 | ||||||||||||||||||||||||
DIP Repayment | (906,814,911 | ) | ||||||||||||||||||||||||
Net Consolidated Cash and Short-Term Investments | 685,158,171 | |||||||||||||||||||||||||
Percentage of Cash Allocated to Premier Group | 0.08 | % | ||||||||||||||||||||||||
Premier Group Pro-rata Share of Cash and Short-Term Investments | $ | 557,231 | ||||||||||||||||||||||||
ASSETS & ESTIMATED REALIZATION | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Net Book Value | Estimated | Estimated | Estimated | Estimated | ||||||||||||||||||||||
June 30, 2005 | Value | Realization Rate | Value | Realization Rate | ||||||||||||||||||||||
2 | Cash and Short-Term Investments | $ | 557,231 | $ | 557,231 | 100 | % | $ | 557,231 | 100 | % | |||||||||||||||
3 | Restricted Cash | — | — | N/A | — | N/A | ||||||||||||||||||||
4 | Accounts Receivable | 1,811,178 | 1,267,825 | 70 | % | 1,448,942 | 80 | % | ||||||||||||||||||
5 | Intercompany Receivables | 1,914,879 | — | 0 | % | — | 0 | % | ||||||||||||||||||
6 | Aircraft Fuel Inventory | — | — | N/A | — | N/A | ||||||||||||||||||||
7 | Prepaid Expenses and Other Current Assets | 118,710 | — | 0 | % | — | 0 | % | ||||||||||||||||||
8 | Flight Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
9 | Other Property and Equipment | 37,894 | 26,526 | 70 | % | 34,105 | 90 | % | ||||||||||||||||||
10 | Intangible Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
11 | Investments and Other Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
12 | Preference and Avoidance Payment Recovery | — | — | — | ||||||||||||||||||||||
Total Assets/Proceeds (A) | $ | 4,439,892 | $ | 1,851,581 | 42 | % | $ | 2,040,278 | 46 | % | ||||||||||||||||
LIQUIDATION COSTS | ||||||||||||||||||||||||||
13 | Trustee Fees | 38,831 | 44,491 | |||||||||||||||||||||||
14 | Counsel for the Trustee and Related Professional Fees | 29,770 | 25,657 | |||||||||||||||||||||||
15 | Wind-Down Fees | 25,887 | 29,661 | |||||||||||||||||||||||
Total Liquidation Costs (B) | $ | 94,488 | $ | 99,809 | ||||||||||||||||||||||
Net Proceeds Available to Creditors (A - B) | $ | 1,757,093 | $ | 1,940,469 | ||||||||||||||||||||||
ESTIMATED RECOVERY TO CREDITORS (CLAIMS) | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Estimated Total | Estimated % of | Estimated Total | Estimated % of | |||||||||||||||||||||||
Estimated | Amount Paid to | Allowed Claim | Estimated | Amount Paid to | Allowed Claim | |||||||||||||||||||||
Notes | Allowed Claim | Creditors | Paid | Allowed Claim | Creditors | Paid | ||||||||||||||||||||
Net Proceeds Available to Super-Priority I/C Creditors: | $ | 1,757,093 | $ | 1,940,469 | ||||||||||||||||||||||
16 | Plus: Receipts from Super-Priority Intercompany Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
16 | Less: Distributions for Super-Priority Intercompany Claims | 348,465 | 348,465 | 100 | % | 348,465 | 348,465 | 100 | % | |||||||||||||||||
Net Proceeds Available to Secured, Admin, and Priority Creditors: | 1,408,628 | 1,592,004 | ||||||||||||||||||||||||
17 | Secured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
18 | Administrative Claims | 597,205,917 | 1,408,628 | 0 | % | 597,205,917 | 1,592,004 | 0 | % | |||||||||||||||||
19 | Priority Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Net Proceeds Available to Unsecured Creditors | — | — | ||||||||||||||||||||||||
20 | PBGC Unsecured Claims | 9,919,353,000 | — | 0.00 | % | 9,919,353,000 | — | 0.00 | % | |||||||||||||||||
21 | Intercompany Unsecured Claims | 8,418,669 | — | 0.00 | % | 8,418,669 | — | 0.00 | % | |||||||||||||||||
22 | Other Unsecured Claims | 3,385 | — | 0.00 | % | 3,385 | — | 0.00 | % | |||||||||||||||||
Total Unsecured Claims | $ | 9,927,775,054 | $ | — | 0.00 | % | $ | 9,927,775,054 | $ | — | 0.00 | % | ||||||||||||||
Table of Contents
HYPOTHETICAL LIQUIDATION ANALYSIS
UNAUDITED
Notes | ||||||||||||||||||||||||||
1 | DIP REPAYMENT | |||||||||||||||||||||||||
Consolidated Liquidity Pool | $ | 1,591,973,081 | ||||||||||||||||||||||||
DIP Repayment | (906,814,911 | ) | ||||||||||||||||||||||||
Net Consolidated Liquidity Pool | 685,158,171 | |||||||||||||||||||||||||
Percentage of Liquidity Pool Allocated to UAL Corp | 0.02 | % | ||||||||||||||||||||||||
UAFC Pro-rata Share of Liquidity Pool | $ | 137,723 | ||||||||||||||||||||||||
ASSETS & ESTIMATED REALIZATION | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Net Book Value | Estimated | Estimated | Estimated | Estimated | ||||||||||||||||||||||
June 30, 2005 | Value | Realization Rate | Value | Realization Rate | ||||||||||||||||||||||
2 | Cash and Short-Term Investments | $ | 137,723 | $ | 137,723 | 100 | % | $ | 137,723 | 100 | % | |||||||||||||||
3 | Restricted Cash | — | — | N/A | — | N/A | ||||||||||||||||||||
4 | Accounts Receivable | 1,911,311 | 1,337,918 | 70 | % | 1,529,049 | 80 | % | ||||||||||||||||||
5 | Intercompany Receivables | 118,495,538 | — | 0 | % | — | 0 | % | ||||||||||||||||||
6 | Aircraft Fuel Inventory | 18,184,903 | 17,821,204 | 98 | % | 17,821,204 | 98 | % | ||||||||||||||||||
7 | Prepaid Expenses and Other Current Assets | 37,889,810 | 27,276,310 | 72 | % | 27,276,310 | 72 | % | ||||||||||||||||||
8 | Flight Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
9 | Other Property and Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
10 | Intangible Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
11 | Investments and Other Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
12 | Preference and Avoidance Payment Recovery | — | — | — | ||||||||||||||||||||||
Total Assets/Proceeds (A) | $ | 176,619,284 | $ | 46,573,155 | 26 | % | $ | 46,764,286 | 26 | % | ||||||||||||||||
LIQUIDATION COSTS | ||||||||||||||||||||||||||
13 | Trustee Fees | 1,393,063 | 1,398,797 | |||||||||||||||||||||||
14 | Counsel for the Trustee and Related Professional Fees | 1,068,015 | 806,640 | |||||||||||||||||||||||
15 | Wind-Down Fees | 928,709 | 932,531 | |||||||||||||||||||||||
Total Liquidation Costs (B) | $ | 3,389,787 | $ | 3,137,968 | ||||||||||||||||||||||
Net Proceeds Available to Creditors (A — B) | $ | 43,183,368 | $ | 43,626,318 | ||||||||||||||||||||||
ESTIMATED RECOVERY TO CREDITORS (CLAIMS) | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Estimated Total | Estimated % of | Estimated Total | Estimated % of | |||||||||||||||||||||||
Estimated | Amount Paid to | Allowed Claim | Estimated | Amount Paid to | Allowed Claim | |||||||||||||||||||||
Notes | Allowed Claim | Creditors | Paid | Allowed Claim | Creditors | Paid | ||||||||||||||||||||
Net Proceeds Available to Super-Priority I/C Creditors: | $ | 43,183,368 | $ | 43,626,318 | ||||||||||||||||||||||
16 | Plus: Receipts from Super-Priority Intercompany Claims | — | 140,121,387 | N/A | — | 140,121,387 | N/A | |||||||||||||||||||
16 | Less: Distributions for Super-Priority Intercompany Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Net Proceeds Available to Secured, Admin, and Priority Creditors: | 183,304,755 | 183,747,705 | ||||||||||||||||||||||||
17 | Secured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
18 | Administrative Claims | 622,063,021 | 183,304,755 | 29 | % | 622,063,021 | 183,747,705 | 30 | % | |||||||||||||||||
19 | Priority Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Net Proceeds Available to Unsecured Creditors | — | — | ||||||||||||||||||||||||
20 | PBGC Unsecured Claims | 9,919,353,000 | — | 0.00 | % | 9,919,353,000 | — | 0.00 | % | |||||||||||||||||
21 | Intercompany Unsecured Claims | 158,217,014 | — | 0.00 | % | 158,217,014 | — | 0.00 | % | |||||||||||||||||
22 | Other Unsecured Claims | 3,015,247 | — | 0.00 | % | 3,015,247 | — | 0.00 | % | |||||||||||||||||
Total Unsecured Claims | $ | 10,080,585,261 | $ | — | 0.00 | % | $ | 10,080,585,261 | $ | — | 0.00 | % | ||||||||||||||
Table of Contents
HYPOTHETICAL LIQUIDATION ANALYSIS
UNAUDITED
Notes | ||||||||||||||||||||||||||
1 | DIP REPAYMENT | |||||||||||||||||||||||||
Consolidated Cash and Short-Term Investments | $ | 1,591,973,081 | ||||||||||||||||||||||||
DIP Repayment | (906,814,911 | ) | ||||||||||||||||||||||||
Net Consolidated Cash and Short-Term Investments | 685,158,171 | |||||||||||||||||||||||||
Percentage of Cash Allocated to United Cogen | 1.88 | % | ||||||||||||||||||||||||
United Cogen Pro-rata Share of Cash and Short-Term Investments | $ | 12,872,240 | ||||||||||||||||||||||||
ASSETS & ESTIMATED REALIZATION | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Net Book Value | Estimated | Estimated | Estimated | Estimated | ||||||||||||||||||||||
June 30, 2005 | Value | Realization Rate | Value | Realization Rate | ||||||||||||||||||||||
2 | Cash and Short-Term Investments | $ | 12,872,240 | $ | 12,872,240 | 100 | % | $ | 12,872,240 | 100 | % | |||||||||||||||
3 | Restricted Cash | — | — | N/A | — | N/A | ||||||||||||||||||||
4 | Accounts Receivable | 692,186 | 478,367 | 69 | % | 546,706 | 79 | % | ||||||||||||||||||
5 | Intercompany Receivables | 234,889 | — | 0 | % | — | 0 | % | ||||||||||||||||||
6 | Aircraft Fuel Inventory | — | — | N/A | — | N/A | ||||||||||||||||||||
7 | Prepaid Expenses and Other Current Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
8 | Flight Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
9 | Other Property and Equipment | 740,392 | 9,490,176 | 1282 | % | 9,490,176 | 1282 | % | ||||||||||||||||||
10 | Intangible Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
11 | Investments and Other Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
12 | Preference and Avoidance Payment Recovery | — | — | — | ||||||||||||||||||||||
Total Assets/Proceeds (A) | $ | 14,539,707 | $ | 22,840,783 | 157 | % | $ | 22,909,121 | 158 | % | ||||||||||||||||
LIQUIDATION COSTS | ||||||||||||||||||||||||||
13 | Trustee Fees | 299,056 | 301,106 | |||||||||||||||||||||||
14 | Counsel for the Trustee and Related Professional Fees | 229,276 | 173,638 | |||||||||||||||||||||||
15 | Wind-Down Fees | 199,371 | 200,738 | |||||||||||||||||||||||
Total Liquidation Costs (B) | $ | 727,704 | $ | 675,482 | ||||||||||||||||||||||
Net Proceeds Available to Creditors (A — B) | $ | 22,113,080 | $ | 22,233,639 | ||||||||||||||||||||||
ESTIMATED RECOVERY TO CREDITORS (CLAIMS) | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Estimated Total | Estimated % of | Estimated Total | Estimated % of | |||||||||||||||||||||||
Estimated | Amount Paid to | Allowed Claim | Estimated | Amount Paid to | Allowed Claim | |||||||||||||||||||||
Notes | Allowed Claim | Creditors | Paid | Allowed Claim | Creditors | Paid | ||||||||||||||||||||
Net Proceeds Available to Super-Priority I/C Creditors: | $ | 22,113,080 | $ | 22,233,639 | ||||||||||||||||||||||
16 | Plus: Receipts from Super-Priority Intercompany Claims | — | 370,159 | N/A | — | 370,159 | N/A | |||||||||||||||||||
16 | Less: Distributions for Super-Priority Intercompany Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Net Proceeds Available to Secured, Admin, and Priority Creditors: | 22,483,239 | 22,603,798 | ||||||||||||||||||||||||
17 | Secured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
18 | Administrative Claims | 598,774,623 | 22,483,239 | 4 | % | 598,774,623 | 22,603,798 | �� | 4 | % | ||||||||||||||||
19 | Priority Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Net Proceeds Available to Unsecured Creditors | — | — | ||||||||||||||||||||||||
20 | PBGC Unsecured Claims | 9,919,353,000 | — | 0.00 | % | 9,919,353,000 | — | 0.00 | % | |||||||||||||||||
21 | Intercompany Unsecured Claims | 1,492,311 | — | 0.00 | % | 1,492,311 | — | 0.00 | % | |||||||||||||||||
22 | Other Unsecured Claims | 1,288,270 | — | 0.00 | % | 1,288,270 | — | 0.00 | % | |||||||||||||||||
Total Unsecured Claims | $ | 9,922,133,581 | $ | — | 0.00 | % | $ | 9,922,133,581 | $ | — | 0.00 | % | ||||||||||||||
Table of Contents
HYPOTHETICAL LIQUIDATION ANALYSIS
UNAUDITED
Notes | ||||||||||||||||||||||||||
1 | DIP REPAYMENT | |||||||||||||||||||||||||
Consolidated Cash and Short-Term Investments | $ | 1,591,973,081 | ||||||||||||||||||||||||
DIP Repayment | (906,814,911 | ) | ||||||||||||||||||||||||
Net Consolidated Cash and Short-Term Investments | 685,158,171 | |||||||||||||||||||||||||
Percentage of Cash Allocated to Mileage Plus Inc. | 0.19 | % | ||||||||||||||||||||||||
Mileage Plus Inc. Pro-rata Share of Cash and Short-Term Investments | $ | 1,329,385 | ||||||||||||||||||||||||
ASSETS & ESTIMATED REALIZATION | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Net Book Value | Estimated | Estimated | Estimated | Estimated | ||||||||||||||||||||||
June 30, 2005 | Value | Realization Rate | Value | Realization Rate | ||||||||||||||||||||||
2 | Cash and Short-Term Investments | $ | 1,329,385 | $ | 1,329,385 | 100 | % | $ | 1,329,385 | 100 | % | |||||||||||||||
3 | Restricted Cash | — | — | N/A | — | N/A | ||||||||||||||||||||
4 | Accounts Receivable | 3,000 | 2,100 | 70 | % | 2,400 | 80 | % | ||||||||||||||||||
5 | Intercompany Receivables | 761,974,822 | — | 0 | % | — | 0 | % | ||||||||||||||||||
6 | Aircraft Fuel Inventory | — | — | N/A | — | N/A | ||||||||||||||||||||
7 | Prepaid Expenses and Other Current Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
8 | Flight Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
9 | Other Property and Equipment | 3,151,842 | 3,151,842 | 100 | % | 3,151,842 | 100 | % | ||||||||||||||||||
10 | Intangible Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
11 | Investments and Other Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
12 | Preference and Avoidance Payment Recovery | — | — | — | ||||||||||||||||||||||
Total Assets/Proceeds (A) | $ | 766,459,049 | $ | 4,483,327 | 1 | % | $ | 4,483,627 | 1 | % | ||||||||||||||||
LIQUIDATION COSTS | ||||||||||||||||||||||||||
13 | Trustee Fees | 94,618 | 94,627 | |||||||||||||||||||||||
14 | Counsel for the Trustee and Related Professional Fees | 72,541 | 54,568 | |||||||||||||||||||||||
15 | Wind-Down Fees | 63,079 | 63,085 | |||||||||||||||||||||||
Total Liquidation Costs (B) | $ | 230,238 | $ | 212,280 | ||||||||||||||||||||||
Net Proceeds Available to Creditors (A — B) | $ | 4,253,089 | $ | 4,271,347 | ||||||||||||||||||||||
ESTIMATED RECOVERY TO CREDITORS (CLAIMS) | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Estimated Total | Estimated % of | Estimated Total | Estimated % of | |||||||||||||||||||||||
Estimated | Amount Paid to | Allowed Claim | Estimated | Amount Paid to | Allowed Claim | |||||||||||||||||||||
Notes | Allowed Claim | Creditors | Paid | Allowed Claim | Creditors | Paid | ||||||||||||||||||||
Net Proceeds Available to Super-Priority I/C Creditors: | $ | 4,253,089 | $ | 4,271,347 | ||||||||||||||||||||||
16 | Plus: Receipts from Super-Priority Intercompany Claims | — | 10,697,586 | N/A | — | 10,697,586 | N/A | |||||||||||||||||||
16 | Less: Distributions for Super-Priority Intercompany Claims | 742,001 | 742,001 | 100 | % | 742,001 | 742,001 | 100 | % | |||||||||||||||||
Net Proceeds Available to Secured, Admin, and Priority Creditors: | 14,208,674 | 14,226,932 | ||||||||||||||||||||||||
17 | Secured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
18 | Administrative Claims | 605,439,857 | 14,208,674 | 2 | % | 605,439,857 | 14,226,932 | 2 | % | |||||||||||||||||
19 | Priority Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Net Proceeds Available to Unsecured Creditors | — | — | ||||||||||||||||||||||||
20 | PBGC Unsecured Claims | 9,919,353,000 | — | 0.00 | % | 9,919,353,000 | — | 0.00 | % | |||||||||||||||||
21 | Intercompany Unsecured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
22 | Other Unsecured Claims | 100,577 | — | 0.00 | % | 100,577 | — | 0.00 | % | |||||||||||||||||
Total Unsecured Claims | $ | 9,919,453,577 | $ | — | 0.00 | % | $ | 9,919,453,577 | $ | — | 0.00 | % | ||||||||||||||
Table of Contents
HYPOTHETICAL LIQUIDATION ANALYSIS
UNAUDITED
Notes | ||||||||||||||||||||||||||
1 | DIP REPAYMENT | |||||||||||||||||||||||||
Consolidated Cash and Short-Term Investments | $ | 1,591,973,081 | ||||||||||||||||||||||||
DIP Repayment | (906,814,911 | ) | ||||||||||||||||||||||||
Net Consolidated Cash and Short-Term Investments | 685,158,171 | |||||||||||||||||||||||||
Percentage of Cash Allocated to United GHS Inc. | 0.00 | % | ||||||||||||||||||||||||
United GHS Inc. Pro-rata Share of Cash and Short-Term Investments | $ | — | ||||||||||||||||||||||||
ASSETS & ESTIMATED REALIZATION | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Net Book Value | Estimated | Estimated | Estimated | Estimated | ||||||||||||||||||||||
June 30, 2005 | Value | Realization Rate | Value | Realization Rate | ||||||||||||||||||||||
2 | Cash and Short-Term Investments | $ | — | $ | — | N/A | $ | — | N/A | |||||||||||||||||
3 | Restricted Cash | — | — | N/A | — | N/A | ||||||||||||||||||||
4 | Accounts Receivable | — | — | N/A | — | N/A | ||||||||||||||||||||
5 | Intercompany Receivables | 1,909,345 | — | 0 | % | — | 0 | % | ||||||||||||||||||
6 | Aircraft Fuel Inventory | — | — | N/A | — | N/A | ||||||||||||||||||||
7 | Prepaid Expenses and Other Current Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
8 | Flight Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
9 | Other Property and Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
10 | Intangible Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
11 | Investments and Other Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
12 | Preference and Avoidance Payment Recovery | — | — | — | ||||||||||||||||||||||
Total Assets/Proceeds (A) | $ | 1,909,345 | $ | — | 0 | % | $ | — | 0 | % | ||||||||||||||||
LIQUIDATION COSTS | ||||||||||||||||||||||||||
13 | Trustee Fees | — | — | |||||||||||||||||||||||
14 | Counsel for the Trustee and Related Professional Fees | — | — | |||||||||||||||||||||||
15 | Wind-Down Fees | — | — | |||||||||||||||||||||||
Total Liquidation Costs (B) | $ | — | $ | — | ||||||||||||||||||||||
Net Proceeds Available to Creditors (A — B) | $ | — | $ | — | ||||||||||||||||||||||
ESTIMATED RECOVERY TO CREDITORS (CLAIMS) | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Estimated Total | Estimated % of | Estimated Total | Estimated % of | |||||||||||||||||||||||
Estimated | Amount Paid to | Allowed Claim | Estimated | Amount Paid to | Allowed Claim | |||||||||||||||||||||
Notes | Allowed Claim | Creditors | Paid | Allowed Claim | Creditors | Paid | ||||||||||||||||||||
Net Proceeds Available to Super-Priority I/C Creditors: | $ | — | $ | — | ||||||||||||||||||||||
16 | Plus: Receipts from Super-Priority Intercompany Claims | — | 1,892,106 | N/A | — | 1,892,106 | N/A | |||||||||||||||||||
16 | Less: Distributions for Super-Priority Intercompany Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Net Proceeds Available to Secured, Admin, and Priority Creditors: | 1,892,106 | 1,892,106 | ||||||||||||||||||||||||
17 | Secured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
18 | Administrative Claims | 597,000,000 | 1,892,106 | 0 | % | 597,000,000 | 1,892,106 | 0 | % | |||||||||||||||||
19 | Priority Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Net Proceeds Available to Unsecured Creditors | — | — | ||||||||||||||||||||||||
20 | PBGC Unsecured Claims | 9,919,353,000 | — | 0.00 | % | 9,919,353,000 | — | 0.00 | % | |||||||||||||||||
21 | Intercompany Unsecured Claims | 370,459 | — | 0.00 | % | 370,459 | — | 0.00 | % | |||||||||||||||||
22 | Other Unsecured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Total Unsecured Claims | $ | 9,919,723,459 | $ | — | 0.00 | % | $ | 9,919,723,459 | $ | — | 0.00 | % | ||||||||||||||
Table of Contents
HYPOTHETICAL LIQUIDATION ANALYSIS
UNAUDITED
Notes | ||||||||||||||||||||||||||
1 | DIP REPAYMENT | |||||||||||||||||||||||||
Consolidated Cash and Short-Term Investments | $ | 1,591,973,081 | ||||||||||||||||||||||||
DIP Repayment | (906,814,911 | ) | ||||||||||||||||||||||||
Net Consolidated Cash and Short-Term Investments | 685,158,171 | |||||||||||||||||||||||||
Percentage of Cash Allocated to United World Wide | 0.00 | % | ||||||||||||||||||||||||
United World Wide Pro-rata Share of Cash and Short-Term Investments | $ | 795 | ||||||||||||||||||||||||
ASSETS & ESTIMATED REALIZATION | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Net Book Value | Estimated | Estimated | Estimated | Estimated | ||||||||||||||||||||||
June 30, 2005 | Value | Realization Rate | Value | Realization Rate | ||||||||||||||||||||||
2 | Cash and Short-Term Investments | $ | 795 | $ | 795 | 100 | % | $ | 795 | 100 | % | |||||||||||||||
3 | Restricted Cash | — | — | N/A | — | N/A | ||||||||||||||||||||
4 | Accounts Receivable | — | — | N/A | — | N/A | ||||||||||||||||||||
5 | Intercompany Receivables | 116,295 | — | 0 | % | — | 0 | % | ||||||||||||||||||
6 | Aircraft Fuel Inventory | — | — | N/A | — | N/A | ||||||||||||||||||||
7 | Prepaid Expenses and Other Current Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
8 | Flight Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
9 | Other Property and Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
10 | Intangible Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
11 | Investments and Other Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
12 | Preference and Avoidance Payment Recovery | — | — | — | ||||||||||||||||||||||
Total Assets/Proceeds (A) | $ | 117,090 | $ | 795 | 1 | % | $ | 795 | 1 | % | ||||||||||||||||
LIQUIDATION COSTS | ||||||||||||||||||||||||||
13 | Trustee Fees | — | — | |||||||||||||||||||||||
14 | Counsel for the Trustee and Related Professional Fees | — | — | |||||||||||||||||||||||
15 | Wind-Down Fees | — | — | |||||||||||||||||||||||
Total Liquidation Costs (B) | $ | — | $ | — | ||||||||||||||||||||||
Net Proceeds Available to Creditors (A — B) | $ | 795 | $ | 795 | ||||||||||||||||||||||
ESTIMATED RECOVERY TO CREDITORS (CLAIMS) | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Estimated Total | Estimated % of | Estimated Total | Estimated % of | |||||||||||||||||||||||
Estimated | Amount Paid to | Allowed Claim | Estimated | Amount Paid to | Allowed Claim | |||||||||||||||||||||
Notes | Allowed Claim | Creditors | Paid | Allowed Claim | Creditors | Paid | ||||||||||||||||||||
Net Proceeds Available to Super-Priority I/C Creditors: | $ | 795 | $ | 795 | ||||||||||||||||||||||
16 | Plus: Receipts from Super-Priority Intercompany Claims | — | 34,969 | N/A | — | 34,969 | N/A | |||||||||||||||||||
16 | Less: Distributions for Super-Priority Intercompany Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Net Proceeds Available to Secured, Admin, and Priority Creditors: | 35,764 | 35,764 | ||||||||||||||||||||||||
17 | Secured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
18 | Administrative Claims | 597,000,000 | 35,764 | 0 | % | 597,000,000 | 35,764 | 0 | % | |||||||||||||||||
19 | Priority Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Net Proceeds Available to Unsecured Creditors | — | — | ||||||||||||||||||||||||
20 | PBGC Unsecured Claims | 9,919,353,000 | — | 0.00 | % | 9,919,353,000 | — | 0.00 | % | |||||||||||||||||
21 | Intercompany Unsecured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
22 | Other Unsecured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Total Unsecured Claims | $ | 9,919,353,000 | $ | — | 0.00 | % | $ | 9,919,353,000 | $ | — | 0.00 | % | ||||||||||||||
Table of Contents
HYPOTHETICAL LIQUIDATION ANALYSIS
UNAUDITED
Notes | ||||||||||||||||||||||||||
1 | DIP REPAYMENT | |||||||||||||||||||||||||
Consolidated Cash and Short-Term Investments | $ | 1,591,973,081 | ||||||||||||||||||||||||
DIP Repayment | (906,814,911 | ) | ||||||||||||||||||||||||
Net Consolidated Cash and Short-Term Investments | 685,158,171 | |||||||||||||||||||||||||
Percentage of Cash Allocated to United Vacations, Inc. | 0.10 | % | ||||||||||||||||||||||||
United Vacations, Inc. Pro-rata Share of Cash and Short-Term Investments | $ | 700,421 | ||||||||||||||||||||||||
ASSETS & ESTIMATED REALIZATION | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Net Book Value | Estimated | Estimated | Estimated | Estimated | ||||||||||||||||||||||
June 30, 2005 | Value | Realization Rate | Value | Realization Rate | ||||||||||||||||||||||
2 | Cash and Short-Term Investments | $ | 700,421 | $ | 700,421 | 100 | % | $ | 700,421 | 100 | % | |||||||||||||||
3 | Restricted Cash | — | — | N/A | — | N/A | ||||||||||||||||||||
4 | Accounts Receivable | — | — | N/A | — | N/A | ||||||||||||||||||||
5 | Intercompany Receivables | 741,320 | — | 0 | % | — | 0 | % | ||||||||||||||||||
6 | Aircraft Fuel Inventory | — | — | N/A | — | N/A | ||||||||||||||||||||
7 | Prepaid Expenses and Other Current Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
8 | Flight Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
9 | Other Property and Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
10 | Intangible Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
11 | Investments and Other Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
12 | Preference and Avoidance Payment Recovery | — | — | — | ||||||||||||||||||||||
Total Assets/Proceeds (A) | $ | 1,441,741 | $ | 700,421 | 49 | % | $ | 700,421 | 49 | % | ||||||||||||||||
LIQUIDATION COSTS | ||||||||||||||||||||||||||
13 | Trustee Fees | — | — | |||||||||||||||||||||||
14 | Counsel for the Trustee and Related Professional Fees | — | — | |||||||||||||||||||||||
15 | Wind-Down Fees | — | — | |||||||||||||||||||||||
Total Liquidation Costs (B) | $ | — | $ | — | ||||||||||||||||||||||
Net Proceeds Available to Creditors (A — B) | $ | 700,421 | $ | 700,421 | ||||||||||||||||||||||
ESTIMATED RECOVERY TO CREDITORS (CLAIMS) | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Estimated Total | Estimated % of | Estimated Total | Estimated % of | |||||||||||||||||||||||
Estimated | Amount Paid to | Allowed Claim | Estimated | Amount Paid to | Allowed Claim | |||||||||||||||||||||
Notes | Allowed Claim | Creditors | Paid | Allowed Claim | Creditors | Paid | ||||||||||||||||||||
Net Proceeds Available to Super-Priority I/C Creditors: | $ | 700,421 | $ | 700,421 | ||||||||||||||||||||||
16 | Plus: Receipts from Super-Priority Intercompany Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
16 | Less: Distributions for Super-Priority Intercompany Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Net Proceeds Available to Secured, Admin, and Priority Creditors: | 700,421 | 700,421 | ||||||||||||||||||||||||
17 | Secured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
18 | Administrative Claims | 597,000,000 | 700,421 | 0 | % | 597,000,000 | 700,421 | 0 | % | |||||||||||||||||
19 | Priority Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Net Proceeds Available to Unsecured Creditors | — | — | ||||||||||||||||||||||||
20 | PBGC Unsecured Claims | 9,919,353,000 | — | 0.00 | % | 9,919,353,000 | — | 0.00 | % | |||||||||||||||||
21 | Intercompany Unsecured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
22 | Other Unsecured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Total Unsecured Claims | $ | 9,919,353,000 | $ | — | 0.00% | $ | 9,919,353,000 | $ | — | 0.00 | % | |||||||||||||||
Table of Contents
HYPOTHETICAL LIQUIDATION ANALYSIS
UNAUDITED
Notes | ||||||||||||||||||||||||||
1 | DIP REPAYMENT | |||||||||||||||||||||||||
Consolidated Cash and Short-Term Investments | $ | 1,591,973,081 | ||||||||||||||||||||||||
DIP Repayment | (906,814,911 | ) | ||||||||||||||||||||||||
Net Consolidated Cash and Short-Term Investments | 685,158,171 | |||||||||||||||||||||||||
Percentage of Cash Allocated to Confetti, Inc. | 0.35 | % | ||||||||||||||||||||||||
Confetti, Inc. Pro-rata Share of Cash and Short-Term Investments | $ | 2,377,698 | ||||||||||||||||||||||||
ASSETS & ESTIMATED REALIZATION | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Net Book Value | Estimated | Estimated | Estimated | Estimated | ||||||||||||||||||||||
June 30, 2005 | Value | Realization Rate | Value | Realization Rate | ||||||||||||||||||||||
2 | Cash and Short-Term Investments | $ | 2,377,698 | $ | 2,377,698 | 100 | % | $ | 2,377,698 | 100 | % | |||||||||||||||
3 | Restricted Cash | — | — | N/A | — | N/A | ||||||||||||||||||||
4 | Accounts Receivable | 827,198 | 827,198 | 100 | % | 827,198 | 100 | % | ||||||||||||||||||
5 | Intercompany Receivables | 894,581 | — | 0 | % | — | 0 | % | ||||||||||||||||||
6 | Aircraft Fuel Inventory | — | — | N/A | — | N/A | ||||||||||||||||||||
7 | Prepaid Expenses and Other Current Assets | 137,700 | 96,390 | 70 | % | 123,930 | 90 | % | ||||||||||||||||||
8 | Flight Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
9 | Other Property and Equipment | 13,599 | — | 0 | % | — | 0 | % | ||||||||||||||||||
10 | Intangible Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
11 | Investments and Other Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
12 | Preference and Avoidance Payment Recovery | — | — | — | ||||||||||||||||||||||
Total Assets/Proceeds (A) | $ | 4,250,776 | $ | 3,301,286 | 78 | % | $ | 3,328,826 | 78 | % | ||||||||||||||||
LIQUIDATION COSTS | ||||||||||||||||||||||||||
13 | Trustee Fees | 27,708 | 28,534 | |||||||||||||||||||||||
14 | Counsel for the Trustee and Related Professional Fees | 21,243 | 16,455 | |||||||||||||||||||||||
15 | Wind-Down Fees | 18,472 | 19,023 | |||||||||||||||||||||||
Total Liquidation Costs (B) | $ | 67,422 | $ | 64,011 | ||||||||||||||||||||||
Net Proceeds Available to Creditors (A — B) | $ | 3,233,864 | $ | 3,264,815 | ||||||||||||||||||||||
ESTIMATED RECOVERY TO CREDITORS (CLAIMS) | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Estimated Total | Estimated % of | Estimated Total | Estimated % of | |||||||||||||||||||||||
Estimated | Amount Paid to | Allowed Claim | Estimated | Amount Paid to | Allowed Claim | |||||||||||||||||||||
Notes | Allowed Claim | Creditors | Paid | Allowed Claim | Creditors | Paid | ||||||||||||||||||||
Net Proceeds Available to Super-Priority I/C Creditors: | $ | 3,233,864 | $ | 3,264,815 | ||||||||||||||||||||||
16 | Plus: Receipts from Super-Priority Intercompany Claims | — | 770,000 | N/A | — | 770,000 | N/A | |||||||||||||||||||
16 | Less: Distributions for Super-Priority Intercompany Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Net Proceeds Available for Secured, Admin, and Priority Creditors: | 4,003,864 | 4,034,815 | ||||||||||||||||||||||||
17 | Secured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
18 | Administrative Claims | 597,000,000 | 4,003,864 | 1 | % | 597,000,000 | 4,034,815 | 1 | % | |||||||||||||||||
19 | Priority Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Net Proceeds Available to Unsecured Creditors | — | — | ||||||||||||||||||||||||
20 | PBGC Unsecured Claims | 9,919,353,000 | — | 0.00 | % | 9,919,353,000 | — | 0.00 | % | |||||||||||||||||
21 | Intercompany Unsecured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
22 | Other Unsecured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Total Unsecured Claims | $ | 9,919,353,000 | $ | — | 0.00 | % | $ | 9,919,353,000 | $ | — | 0.00 | % | ||||||||||||||
Table of Contents
HYPOTHETICAL LIQUIDATION ANALYSIS
UNAUDITED
Notes | ||||||||||||||||||||||||||
1 | DIP REPAYMENT | |||||||||||||||||||||||||
Consolidated Cash and Short-Term Investments | $ | 1,591,973,081 | ||||||||||||||||||||||||
DIP Repayment | (906,814,911 | ) | ||||||||||||||||||||||||
Net Consolidated Cash and Short-Term Investments | 685,158,171 | |||||||||||||||||||||||||
Percentage of Cash Allocated to Mileage Plus Holdings | 0.00 | % | ||||||||||||||||||||||||
Mileage Plus Holdings Pro-rata Share of Cash and Short-Term Investments | $ | — | ||||||||||||||||||||||||
ASSETS & ESTIMATED REALIZATION | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Net Book Value | Estimated | Estimated | Estimated | Estimated | ||||||||||||||||||||||
June 30, 2005 | Realization Rate | Value | Realization Rate | |||||||||||||||||||||||
2 | Cash and Short-Term Investments | $ | — | $ | — | N/A | $ | — | N/A | |||||||||||||||||
3 | Restricted Cash | — | — | N/A | — | N/A | ||||||||||||||||||||
4 | Accounts Receivable | — | — | N/A | — | N/A | ||||||||||||||||||||
5 | Intercompany Receivables | 23,700,000 | — | 0 | % | — | 0 | % | ||||||||||||||||||
6 | Aircraft Fuel Inventory | — | — | N/A | — | N/A | ||||||||||||||||||||
7 | Prepaid Expenses and Other Current Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
8 | Flight Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
9 | Other Property and Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
10 | Intangible Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
11 | Investments and Other Assets | 1,000 | — | 0 | % | — | 0 | % | ||||||||||||||||||
12 | Preference and Avoidance Payment Recovery | — | — | — | ||||||||||||||||||||||
Total Assets/Proceeds (A) | $ | 23,701,000 | $ | — | 0 | % | $ | — | 0 | % | ||||||||||||||||
LIQUIDATION COSTS | ||||||||||||||||||||||||||
13 | Trustee Fees | — | — | |||||||||||||||||||||||
14 | Counsel for the Trustee and Related Professional Fees | — | — | |||||||||||||||||||||||
15 | Wind-Down Fees | — | — | |||||||||||||||||||||||
Total Liquidation Costs (B) | $ | — | $ | — | ||||||||||||||||||||||
Net Proceeds Available to Creditors (A — B) | $ | — | $ | — | ||||||||||||||||||||||
ESTIMATED RECOVERY TO CREDITORS (CLAIMS) | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Estimated Total | Estimated % of | Estimated Total | Estimated % of | |||||||||||||||||||||||
Estimated | Amount Paid to | Allowed Claim | Estimated | Amount Paid to | Allowed Claim | |||||||||||||||||||||
Notes | Allowed Claim | Creditors | Paid | Allowed Claim | Creditors | Paid | ||||||||||||||||||||
Net Proceeds Available to Super-Priority I/C Creditors: | $ | — | $ | — | ||||||||||||||||||||||
16 | Plus: Receipts from Super-Priority Intercompany Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
16 | Less: Distributions for Super-Priority Intercompany Claims | 2,000 | — | 0 | % | 2,000 | — | 0 | % | |||||||||||||||||
Net Proceeds Available for Secured, Admin, and Priority Creditors: | — | — | ||||||||||||||||||||||||
17 | Secured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
18 | Administrative Claims | 597,000,000 | — | 0 | % | 597,000,000 | — | 0 | % | |||||||||||||||||
19 | Priority Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Net Proceeds Available to Unsecured Creditors | — | — | ||||||||||||||||||||||||
20 | PBGC Unsecured Claims | 9,919,353,000 | — | 0.00 | % | 9,919,353,000 | — | 0.00 | % | |||||||||||||||||
21 | Intercompany Unsecured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
22 | Other Unsecured Claims | 233,701 | — | 0.00 | % | 233,701 | — | 0.00 | % | |||||||||||||||||
Total Unsecured Claims | $ | 9,919,586,701 | $ | — | $ | 0.00 | % | $ | 9,919,586,701 | $ | — | $ | 0.00 | % | ||||||||||||
Table of Contents
HYPOTHETICAL LIQUIDATION ANALYSIS
UNAUDITED
Notes | ||||||||||||||||||||||||||
1 | DIP REPAYMENT | |||||||||||||||||||||||||
Consolidated Cash and Short-Term Investments | $ | 1,591,973,081 | ||||||||||||||||||||||||
DIP Repayment | (906,814,911 | ) | ||||||||||||||||||||||||
Net Consolidated Cash and Short-Term Investments | 685,158,171 | |||||||||||||||||||||||||
Percentage of Cash Allocated to Mileage Plus Marketing | 0.00 | % | ||||||||||||||||||||||||
Mileage Plus Marketing Pro-rata Share of Cash and Short-Term Investments | $ | — | ||||||||||||||||||||||||
ASSETS & ESTIMATED REALIZATION | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Net Book Value | Estimated | Estimated | Estimated | Estimated | ||||||||||||||||||||||
June 30, 2005 | Value | Realization Rate | Value | Realization Rate | ||||||||||||||||||||||
2 | Cash and Short-Term Investments | $ | — | $ | — | N/A | $ | — | N/A | |||||||||||||||||
3 | Restricted Cash | — | — | N/A | — | N/A | ||||||||||||||||||||
4 | Accounts Receivable | — | — | N/A | — | N/A | ||||||||||||||||||||
5 | Intercompany Receivables | 1,000 | — | 0 | % | — | 0 | % | ||||||||||||||||||
6 | Aircraft Fuel Inventory | — | — | N/A | — | N/A | ||||||||||||||||||||
7 | Prepaid Expenses and Other Current Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
8 | Flight Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
9 | Other Property and Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
10 | Intangible Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
11 | Investments and Other Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
12 | Preference and Avoidance Payment Recovery | — | — | — | ||||||||||||||||||||||
Total Assets/Proceeds (A) | $ | 1,000 | $ | — | 0 | % | $ | — | 0 | % | ||||||||||||||||
LIQUIDATION COSTS | ||||||||||||||||||||||||||
13 | Trustee Fees | — | — | |||||||||||||||||||||||
14 | Counsel for the Trustee and Related Professional Fees | — | — | |||||||||||||||||||||||
15 | Wind-Down Fees | — | — | |||||||||||||||||||||||
Total Liquidation Costs (B) | $ | — | $ | — | ||||||||||||||||||||||
Net Proceeds Available to Creditors (A — B) | $ | — | $ | — | ||||||||||||||||||||||
ESTIMATED RECOVERY TO CREDITORS (CLAIMS) | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Estimated Total | Estimated % of | Estimated Total | Estimated % of | |||||||||||||||||||||||
Estimated | Amount Paid to | Allowed Claim | Estimated | Amount Paid to | Allowed Claim | |||||||||||||||||||||
Notes | Allowed Claim | Creditors | Paid | Allowed Claim | Creditors | Paid | ||||||||||||||||||||
Net Proceeds Available to Super-Priority I/C Creditors: | $ | — | $ | — | ||||||||||||||||||||||
16 | Plus: Receipts from Super-Priority Intercompany Claims | — | 1,000 | N/A | — | 1,000 | N/A | |||||||||||||||||||
16 | Less: Distributions for Super-Priority Intercompany Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Net Proceeds Available for Secured, Admin, and Priority Creditors: | 1,000 | 1,000 | ||||||||||||||||||||||||
17 | Secured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
18 | Administrative Claims | 597,000,000 | 1,000 | 0 | % | 597,000,000 | 1,000 | 0 | % | |||||||||||||||||
19 | Priority Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Net Proceeds Available to Unsecured Creditors | — | — | ||||||||||||||||||||||||
20 | PBGC Unsecured Claims | 9,919,353,000 | — | 0.00 | % | 9,919,353,000 | — | 0.00 | % | |||||||||||||||||
21 | Intercompany Unsecured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
22 | Other Unsecured Claims | 6,100 | — | 0.00 | % | 6,100 | — | 0.00 | % | |||||||||||||||||
Total Unsecured Claims | $ | 9,919,359,100 | $ | — | 0.00 | % | $ | 9,919,359,100 | $ | — | 0.00 | % | ||||||||||||||
Table of Contents
HYPOTHETICAL LIQUIDATION ANALYSIS
UNAUDITED
Notes | ||||||||||||||||||||||||||
1 | DIP REPAYMENT | |||||||||||||||||||||||||
Consolidated Cash and Short-Term Investments | $ | 1,591,973,081 | ||||||||||||||||||||||||
DIP Repayment | (906,814,911 | ) | ||||||||||||||||||||||||
Net Consolidated Cash and Short-Term Investments | 685,158,171 | |||||||||||||||||||||||||
Percentage of Cash Allocated to MyPoints.com Inc. | 1.69 | % | ||||||||||||||||||||||||
MyPoints.com Inc. Pro-rata Share of Cash and Short-Term Investments | $ | 11,548,154 | ||||||||||||||||||||||||
ASSETS & ESTIMATED REALIZATION | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Net Book Value | Estimated | Estimated | Estimated | Estimated | ||||||||||||||||||||||
June 30, 2005 | Value | Realization Rate | Value | Realization Rate | ||||||||||||||||||||||
2 | Cash and Short-Term Investments | $ | 11,548,154 | $ | 11,548,154 | 100 | % | $ | 11,548,154 | 100 | % | |||||||||||||||
3 | Restricted Cash | — | — | N/A | — | N/A | ||||||||||||||||||||
4 | Accounts Receivable | 6,894,152 | 4,825,906 | 70 | % | 5,515,322 | 80 | % | ||||||||||||||||||
5 | Intercompany Receivables | 724,117 | — | 0 | % | — | 0 | % | ||||||||||||||||||
6 | Aircraft Fuel Inventory | — | — | N/A | — | N/A | ||||||||||||||||||||
7 | Prepaid Expenses and Other Current Assets | 1,376,041 | 1,376,041 | 100 | % | 1,376,041 | 100 | % | ||||||||||||||||||
8 | Flight Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
9 | Other Property and Equipment | 746,302 | — | 0 | % | — | 0 | % | ||||||||||||||||||
10 | Intangible Assets | 17,849,801 | 2,400,000 | 13 | % | 3,100,000 | 17 | % | ||||||||||||||||||
11 | Investments and Other Assets | 1,468,753 | — | 0 | % | — | 0 | % | ||||||||||||||||||
12 | Preference and Avoidance Payment Recovery | — | — | — | ||||||||||||||||||||||
Total Assets/Proceeds (A) | $ | 40,607,320 | $ | 20,150,101 | 50 | % | $ | 21,539,516 | 53 | % | ||||||||||||||||
LIQUIDATION COSTS | ||||||||||||||||||||||||||
13 | Trustee Fees | 258,058 | 299,741 | |||||||||||||||||||||||
14 | Counsel for the Trustee and Related Professional Fees | 197,845 | 172,851 | |||||||||||||||||||||||
15 | Wind-Down Fees | 172,039 | 199,827 | |||||||||||||||||||||||
Total Liquidation Costs (B) | $ | 627,942 | $ | 672,419 | ||||||||||||||||||||||
Net Proceeds Available to Creditors (A — B) | $ | 19,522,159 | $ | 20,867,098 | ||||||||||||||||||||||
ESTIMATED RECOVERY TO CREDITORS (CLAIMS) | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Estimated Total | Estimated % of | Estimated Total | Estimated % of | |||||||||||||||||||||||
Estimated | Amount Paid to | Allowed Claim | Estimated | Amount Paid to | Allowed Claim | |||||||||||||||||||||
Notes | Allowed Claim | Creditors | Paid | Allowed Claim | Creditors | Paid | ||||||||||||||||||||
Net Proceeds Available to Super-Priority I/C Creditors: | $ | 19,522,159 | $ | 20,867,098 | ||||||||||||||||||||||
16 | Plus: Receipts from Super-Priority Intercompany Claims | — | 4,049,927 | N/A | — | 4,049,927 | N/A | |||||||||||||||||||
16 | Less: Distributions for Super-Priority Intercompany Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Net Proceeds Available for Secured, Admin, and Priority Creditors: | 23,572,086 | 24,917,025 | ||||||||||||||||||||||||
17 | Secured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
18 | Administrative Claims | 599,550,516 | 23,572,086 | 4 | % | 599,550,516 | 24,917,025 | 4 | % | |||||||||||||||||
19 | Priority Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Net Proceeds Available to Unsecured Creditors | — | — | ||||||||||||||||||||||||
20 | PBGC Unsecured Claims | 9,919,353,000 | — | 0.00 | % | 9,919,353,000 | — | 0.00 | % | |||||||||||||||||
21 | Intercompany Unsecured Claims | 3,325,000 | — | 0.00 | % | 3,325,000 | — | 0.00 | % | |||||||||||||||||
22 | Other Unsecured Claims | 1,381,165 | — | 0.00 | % | 1,381,165 | — | 0.00 | % | |||||||||||||||||
Total Unsecured Claims | $ | 9,924,059,165 | $ | — | 0.00 | % | $ | 9,924,059,165 | $ | — | 0.00 | % | ||||||||||||||
Table of Contents
HYPOTHETICAL LIQUIDATION ANALYSIS
UNAUDITED
Notes | ||||||||||||||||||||||||||
1 | DIP REPAYMENT | |||||||||||||||||||||||||
Consolidated Cash and Short-Term Investments | $ | 1,591,973,081 | ||||||||||||||||||||||||
DIP Repayment | (906,814,911 | ) | ||||||||||||||||||||||||
Net Consolidated Cash and Short-Term Investments | 685,158,171 | |||||||||||||||||||||||||
Percentage of Cash Allocated to Cybergold, Inc. | 0.00 | % | ||||||||||||||||||||||||
Cybergold, Inc. Pro-rata Share of Cash and Short-Term Investments | $ | — | ||||||||||||||||||||||||
ASSETS & ESTIMATED REALIZATION | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Net Book Value | Estimated | Estimated | Estimated | Estimated | ||||||||||||||||||||||
June 30, 2005 | Value | Realization Rate | Value | Realization Rate | ||||||||||||||||||||||
2 | Cash and Short-Term Investments | $ | — | $ | — | N/A | $ | — | N/A | |||||||||||||||||
3 | Restricted Cash | — | — | N/A | — | N/A | ||||||||||||||||||||
4 | Accounts Receivable | — | — | N/A | — | N/A | ||||||||||||||||||||
5 | Intercompany Receivables | — | — | N/A | — | N/A | ||||||||||||||||||||
6 | Aircraft Fuel Inventory | — | — | N/A | — | N/A | ||||||||||||||||||||
7 | Prepaid Expenses and Other Current Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
8 | Flight Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
9 | Other Property and Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
10 | Intangible Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
11 | Investments and Other Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
12 | Preference and Avoidance Payment Recovery | — | — | — | ||||||||||||||||||||||
Total Assets/Proceeds (A) | $ | — | $ | — | N/A | $ | — | N/A | ||||||||||||||||||
LIQUIDATION COSTS | ||||||||||||||||||||||||||
13 | Trustee Fees | — | — | |||||||||||||||||||||||
14 | Counsel for the Trustee and Related Professional Fees | — | — | |||||||||||||||||||||||
15 | Wind-Down Fees | — | — | |||||||||||||||||||||||
Total Liquidation Costs (B) | $ | — | $ | — | ||||||||||||||||||||||
Net Proceeds Available to Creditors (A — B) | $ | — | $ | — | ||||||||||||||||||||||
ESTIMATED RECOVERY TO CREDITORS (CLAIMS) | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Estimated Total | Estimated % of | Estimated Total | Estimated % of | |||||||||||||||||||||||
Estimated | Amount Paid to | Allowed Claim | Estimated | Amount Paid to | Allowed Claim | |||||||||||||||||||||
Notes | Allowed Claim | Creditors | Paid | Allowed Claim | Creditors | Paid | ||||||||||||||||||||
Net Proceeds Available to Super-Priority I/C Creditors: | $ | — | $ | — | ||||||||||||||||||||||
16 | Plus: Receipts from Super-Priority Intercompany Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
16 | Less: Distributions for Super-Priority Intercompany Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Net Proceeds Available for Secured, Admin, and Priority Creditors: | — | — | ||||||||||||||||||||||||
17 | Secured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
18 | Administrative Claims | 597,000,000 | — | 0 | % | 597,000,000 | — | 0 | % | |||||||||||||||||
19 | Priority Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Net Proceeds Available to Unsecured Creditors | — | — | ||||||||||||||||||||||||
20 | PBGC Unsecured Claims | 9,919,353,000 | — | 0.00 | % | 9,919,353,000 | — | 0.00 | % | |||||||||||||||||
21 | Intercompany Unsecured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
22 | Other Unsecured Claims | 10,199 | — | 0 | % | 10,199 | — | 0 | % | |||||||||||||||||
Total Unsecured Claims | $ | 9,919,363,199 | $ | — | 0.00 | % | $ | 9,919,363,199 | $ | — | 0.00 | % | ||||||||||||||
Table of Contents
HYPOTHETICAL LIQUIDATION ANALYSIS
UNAUDITED
Notes | ||||||||||||||||||||||||||
1 | DIP REPAYMENT | |||||||||||||||||||||||||
Consolidated Cash and Short-Term Investments | $ | 1,591,973,081 | ||||||||||||||||||||||||
DIP Repayment | (906,814,911 | ) | ||||||||||||||||||||||||
Net Consolidated Cash and Short-Term Investments | 685,158,171 | |||||||||||||||||||||||||
Percentage of Cash Allocated to iTarget | 0.00 | % | ||||||||||||||||||||||||
iTarget Pro-rata Share of Cash and Short-Term Investments | $ | — | ||||||||||||||||||||||||
ASSETS & ESTIMATED REALIZATION | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Net Book Value | Estimated | Estimated | Estimated | Estimated | ||||||||||||||||||||||
June 30, 2005 | Value | Realization Rate | Value | Realization Rate | ||||||||||||||||||||||
2 | Cash and Short-Term Investments | $ | — | $ | — | N/A | $ | — | N/A | |||||||||||||||||
3 | Restricted Cash | — | — | N/A | — | N/A | ||||||||||||||||||||
4 | Accounts Receivable | — | — | N/A | — | N/A | ||||||||||||||||||||
5 | Intercompany Receivables | — | — | N/A | — | N/A | ||||||||||||||||||||
6 | Aircraft Fuel Inventory | — | — | N/A | — | N/A | ||||||||||||||||||||
7 | Prepaid Expenses and Other Current Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
8 | Flight Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
9 | Other Property and Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
10 | Intangible Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
11 | Investments and Other Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
12 | Preference and Avoidance Payment Recovery | — | — | — | ||||||||||||||||||||||
Total Assets/Proceeds (A) | $ | — | $ | — | N/A | $ | — | N/A | ||||||||||||||||||
LIQUIDATION COSTS | ||||||||||||||||||||||||||
13 | Trustee Fees | — | — | |||||||||||||||||||||||
14 | Counsel for the Trustee and Related Professional Fees | — | — | |||||||||||||||||||||||
15 | Wind-Down Fees | — | — | |||||||||||||||||||||||
Total Liquidation Costs (B) | $ | — | $ | — | ||||||||||||||||||||||
Net Proceeds Available to Creditors (A — B) | $ | — | $ | — | ||||||||||||||||||||||
ESTIMATED RECOVERY TO CREDITORS (CLAIMS) | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Estimated Total | Estimated % of | Estimated Total | Estimated % of | |||||||||||||||||||||||
Estimated | Amount Paid to | Allowed Claim | Estimated | Amount Paid to | Allowed Claim | |||||||||||||||||||||
Notes | Allowed Claim | Creditors | Paid | Allowed Claim | Creditors | Paid | ||||||||||||||||||||
Net Proceeds Available to Super-Priority I/C Creditors: | $ | — | $ | — | ||||||||||||||||||||||
16 | Plus: Receipts from Super-Priority Intercompany Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
16 | Less: Distributions for Super-Priority Intercompany Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Net Proceeds Available for Secured, Admin, and Priority Creditors: | — | — | ||||||||||||||||||||||||
17 | Secured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
18 | Administrative Claims | 597,000,000 | — | 0 | % | 597,000,000 | — | 0 | % | |||||||||||||||||
19 | Priority Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Net Proceeds Available to Unsecured Creditors | — | — | ||||||||||||||||||||||||
20 | PBGC Unsecured Claims | 9,919,353,000 | — | 0.00 | % | 9,919,353,000 | — | 0.00 | % | |||||||||||||||||
21 | Intercompany Unsecured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
22 | Other Unsecured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Total Unsecured Claims | $ | 9,919,353,000 | $ | — | 0.00 | % | $ | 9,919,353,000 | $ | — | 0.00 | % | ||||||||||||||
Table of Contents
HYPOTHETICAL LIQUIDATION ANALYSIS
UNAUDITED
Notes | ||||||||||||||||||||||||||
1 | DIP REPAYMENT | |||||||||||||||||||||||||
Consolidated Cash and Short-Term Investments | $ | 1,591,973,081 | ||||||||||||||||||||||||
DIP Repayment | (906,814,911 | ) | ||||||||||||||||||||||||
Net Consolidated Cash and Short-Term Investments | 685,158,171 | |||||||||||||||||||||||||
Percentage of Cash Allocated to MyPoints Offline Services | 0.00 | % | ||||||||||||||||||||||||
MyPoints Offline Services Pro-rata Share of Cash and Short-Term Investments | $ | — | ||||||||||||||||||||||||
ASSETS & ESTIMATED REALIZATION | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Net Book Value | Estimated | Estimated | Estimated | Estimated | ||||||||||||||||||||||
June 30, 2005 | Value | Realization Rate | Value | Realization Rate | ||||||||||||||||||||||
2 | Cash and Short-Term Investments | $ | — | $ | — | N/A | $ | — | N/A | |||||||||||||||||
3 | Restricted Cash | — | — | N/A | — | N/A | ||||||||||||||||||||
4 | Accounts Receivable | — | — | N/A | — | N/A | ||||||||||||||||||||
5 | Intercompany Receivables | — | — | N/A | — | N/A | ||||||||||||||||||||
6 | Aircraft Fuel Inventory | — | — | N/A | — | N/A | ||||||||||||||||||||
7 | Prepaid Expenses and Other Current Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
8 | Flight Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
9 | Other Property and Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
10 | Intangible Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
11 | Investments and Other Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
12 | Preference and Avoidance Payment Recovery | — | — | — | ||||||||||||||||||||||
Total Assets/Proceeds (A) | $ | — | $ | — | N/A | $ | — | N/A | ||||||||||||||||||
LIQUIDATION COSTS | ||||||||||||||||||||||||||
13 | Trustee Fees | — | — | |||||||||||||||||||||||
14 | Counsel for the Trustee and Related Professional Fees | — | — | |||||||||||||||||||||||
15 | Wind-Down Fees | — | — | |||||||||||||||||||||||
Total Liquidation Costs (B) | $ | — | $ | — | ||||||||||||||||||||||
Net Proceeds Available to Creditors (A — B) | $ | — | $ | — | ||||||||||||||||||||||
ESTIMATED RECOVERY TO CREDITORS (CLAIMS) | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Estimated Total | Estimated % of | Estimated Total | Estimated % of | |||||||||||||||||||||||
Estimated | Amount Paid to | Allowed Claim | Estimated | Amount Paid to | Allowed Claim | |||||||||||||||||||||
Notes | Allowed Claim | Creditors | Paid | Allowed Claim | Creditors | Paid | ||||||||||||||||||||
Net Proceeds Available to Super-Priority I/C Creditors: | $ | — | $ | — | ||||||||||||||||||||||
16 | Plus: Receipts from Super-Priority Intercompany Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
16 | Less: Distributions for Super-Priority Intercompany Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Net Proceeds Available for Secured, Admin, and Priority Creditors: | — | — | ||||||||||||||||||||||||
17 | Secured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
18 | Administrative Claims | 597,000,000 | — | 0 | % | 597,000,000 | — | 0 | % | |||||||||||||||||
19 | Priority Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Net Proceeds Available to Unsecured Creditors | — | — | ||||||||||||||||||||||||
20 | PBGC Unsecured Claims | 9,919,353,000 | — | 0.00 | % | 9,919,353,000 | — | 0.00 | % | |||||||||||||||||
21 | Intercompany Unsecured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
22 | Other Unsecured Claims | 30,161 | — | 0 | % | 30,161 | — | 0 | % | |||||||||||||||||
Total Unsecured Claims | $ | 9,919,383,161 | $ | — | 0.00 | % | $ | 9,919,383,161 | $ | — | 0.00 | % | ||||||||||||||
Table of Contents
HYPOTHETICAL LIQUIDATION ANALYSIS
UNAUDITED
Notes | ||||||||||||||||||||||||||
1 | DIP REPAYMENT | |||||||||||||||||||||||||
Consolidated Cash and Short-Term Investments | $ | 1,591,973,081 | ||||||||||||||||||||||||
DIP Repayment | (906,814,911 | ) | ||||||||||||||||||||||||
Net Consolidated Cash and Short-Term Investments | 685,158,171 | |||||||||||||||||||||||||
Percentage of Cash Allocated to UAL Comp. Services | 0.00 | % | ||||||||||||||||||||||||
UAL Company Services Pro-rata Share of Cash and Short-Term Investments | $ | — | ||||||||||||||||||||||||
ASSETS & ESTIMATED REALIZATION | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Net Book Value | Estimated | Estimated | Estimated | Estimated | ||||||||||||||||||||||
June 30, 2005 | Value | Realization Rate | Value | Realization Rate | ||||||||||||||||||||||
2 | Cash and Short-Term Investments | $ | — | $ | — | N/A | $ | — | N/A | |||||||||||||||||
3 | Restricted Cash | — | — | N/A | — | N/A | ||||||||||||||||||||
4 | Accounts Receivable | — | — | N/A | — | N/A | ||||||||||||||||||||
5 | Intercompany Receivables | — | — | N/A | — | N/A | ||||||||||||||||||||
6 | Aircraft Fuel Inventory | — | — | N/A | — | N/A | ||||||||||||||||||||
7 | Prepaid Expenses and Other Current Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
8 | Flight Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
9 | Other Property and Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
10 | Intangible Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
11 | Investments and Other Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
12 | Preference and Avoidance Payment Recovery | — | — | — | ||||||||||||||||||||||
Total Assets/Proceeds (A) | $ | — | $ | — | N/A | $ | — | N/A | ||||||||||||||||||
LIQUIDATION COSTS | ||||||||||||||||||||||||||
13 | Trustee Fees | — | — | |||||||||||||||||||||||
14 | Counsel for the Trustee and Related Professional Fees | — | — | |||||||||||||||||||||||
15 | Wind-Down Fees | — | — | |||||||||||||||||||||||
Total Liquidation Costs (B) | $ | — | $ | — | ||||||||||||||||||||||
Net Proceeds Available to Creditors (A — B) | $ | — | $ | — | ||||||||||||||||||||||
ESTIMATED RECOVERY TO CREDITORS (CLAIMS) | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Estimated Total | Estimated % of | Estimated Total | Estimated % of | |||||||||||||||||||||||
Estimated | Amount Paid to | Allowed Claim | Estimated | Amount Paid to | Allowed Claim | |||||||||||||||||||||
Notes | Allowed Claim | Creditors | Paid | Allowed Claim | Creditors | Paid | ||||||||||||||||||||
Net Proceeds Available to Super-Priority I/C Creditors: | $ | — | $ | — | ||||||||||||||||||||||
16 | Plus: Receipts from Super-Priority Intercompany Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
16 | Less: Distributions for Super-Priority Intercompany Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Net Proceeds Available for Secured, Admin, and Priority Creditors: | — | — | ||||||||||||||||||||||||
17 | Secured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
18 | Administrative Claims | 597,000,000 | — | 0 | % | 597,000,000 | — | 0 | % | |||||||||||||||||
19 | Priority Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Net Proceeds Available to Unsecured Creditors | — | — | ||||||||||||||||||||||||
20 | PBGC Unsecured Claims | 9,919,353,000 | — | 0.00 | % | 9,919,353,000 | — | 0.00 | % | |||||||||||||||||
21 | Intercompany Unsecured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
22 | Other Unsecured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Total Unsecured Claims | $ | 9,919,353,000 | $ | — | 0.00 | % | $ | 9,919,353,000 | $ | — | 0.00 | % | ||||||||||||||
Table of Contents
HYPOTHETICAL LIQUIDATION ANALYSIS
UNAUDITED
Notes | ||||||||||||||||||||||||||
1 | DIP REPAYMENT | |||||||||||||||||||||||||
Consolidated Cash and Short-Term Investments | $ | 1,591,973,081 | ||||||||||||||||||||||||
DIP Repayment | (906,814,911 | ) | ||||||||||||||||||||||||
Net Consolidated Cash and Short-Term Investments | 685,158,171 | |||||||||||||||||||||||||
Percentage of Cash Allocated to Four Star Leasing | 0 | % | ||||||||||||||||||||||||
Four Star Leasing Pro-rata Share of Cash and Short-Term Investments | $ | — | ||||||||||||||||||||||||
ASSETS & ESTIMATED REALIZATION | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Net Book Value | Estimated | Estimated | Estimated | Estimated | ||||||||||||||||||||||
June 30, 2005 | Value | Realization Rate | Value | Realization Rate | ||||||||||||||||||||||
2 | Cash and Short-Term Investments | $ | — | $ | — | N/A | $ | — | N/A | |||||||||||||||||
3 | Restricted Cash | — | — | N/A | — | N/A | ||||||||||||||||||||
4 | Accounts Receivable | 28,701,365 | — | 0 | % | — | 0 | % | ||||||||||||||||||
5 | Intercompany Receivables | 58,617,611 | — | 0 | % | — | 0 | % | ||||||||||||||||||
6 | Aircraft Fuel Inventory | — | — | N/A | — | N/A | ||||||||||||||||||||
7 | Prepaid Expenses and Other Current Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
8 | Flight Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
9 | Other Property and Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
10 | Intangible Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
11 | Investments and Other Assets | 114,564,715 | — | 0 | % | — | 0 | % | ||||||||||||||||||
12 | Preference and Avoidance Payment Recovery | — | — | — | ||||||||||||||||||||||
Total Assets/Proceeds(A) | $ | 201,883,691 | $ | — | 0 | % | $ | — | 0 | % | ||||||||||||||||
LIQUIDATION COSTS | ||||||||||||||||||||||||||
13 | Trustee Fees | — | — | |||||||||||||||||||||||
14 | Counsel for the Trustee and Related Professional Fees | — | — | |||||||||||||||||||||||
15 | Wind-Down Fees | — | — | |||||||||||||||||||||||
Total Liquidation Costs (B) | $ | — | $ | — | ||||||||||||||||||||||
Net Proceeds Available to Creditors (A — B) | $ | — | $ | — | ||||||||||||||||||||||
ESTIMATED RECOVERY TO CREDITORS (CLAIMS) | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Estimated Total | Estimated % of | Estimated Total | Estimated % of | |||||||||||||||||||||||
Estimated | Amount Paid to | Allowed Claim | Estimated | Amount Paid to | Allowed Claim | |||||||||||||||||||||
Notes | Allowed Claim | Creditors | Paid | Allowed Claim | Creditors | Paid | ||||||||||||||||||||
Net Proceeds Available to Super-Priority I/C Creditors: | $ | — | $ | — | ||||||||||||||||||||||
16 | Plus: Receipts from Super-Priority Intercompany Claims | — | 13,110,900 | N/A | — | 13,110,900 | N/A | |||||||||||||||||||
16 | Less: Distributions for Super-Priority Intercompany Claims | 6,634,443 | 6,634,443 | 100 | % | 6,634,443 | 6,634,443 | 100 | % | |||||||||||||||||
Net Proceeds Available for Secured, Admin, and Priority Creditors: | 6,476,457 | 6,476,457 | ||||||||||||||||||||||||
17 | Secured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
18 | Administrative Claims | 597,000,000 | 6,476,457 | 1 | % | 597,000,000 | 6,476,457 | 1 | % | |||||||||||||||||
19 | Priority Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Net Proceeds Available to Unsecured Creditors | — | — | ||||||||||||||||||||||||
20 | PBGC Unsecured Claims | 9,919,353,000 | — | 0.00 | % | 9,919,353,000 | — | 0.00 | % | |||||||||||||||||
21 | Intercompany Unsecured Claims | 164,558,552 | — | 0.00 | % | 164,558,552 | — | 0.00 | % | |||||||||||||||||
22 | Other Unsecured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Total Unsecured Claims | $ | 10,083,911,552 | $ | — | 0.00 | % | $ | 10,083,911,552 | $ | — | 0.00 | % | ||||||||||||||
Table of Contents
HYPOTHETICAL LIQUIDATION ANALYSIS
UNAUDITED
Notes | ||||||||||||||||||||||||||
1 | DIP REPAYMENT | |||||||||||||||||||||||||
Consolidated Cash and Short-Term Investments | $ | 1,591,973,081 | ||||||||||||||||||||||||
DIP Repayment | (906,814,911 | ) | ||||||||||||||||||||||||
Net Consolidated Cash and Short-Term Investments | 685,158,171 | |||||||||||||||||||||||||
Percentage of Cash Allocated to Air Wis Services | 0.00 | % | ||||||||||||||||||||||||
Air Wis Services Pro-rata Share of Cash and Short-Term Investments | $ | — | ||||||||||||||||||||||||
ASSETS & ESTIMATED REALIZATION | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Net Book Value | Estimated | Estimated | Estimated | Estimated | ||||||||||||||||||||||
June 30, 2005 | Value | Realization Rate | Value | Realization Rate | ||||||||||||||||||||||
2 | Cash and Short-Term Investments | $ | — | $ | — | N/A | $ | — | N/A | |||||||||||||||||
3 | Restricted Cash | — | — | N/A | — | N/A | ||||||||||||||||||||
4 | Accounts Receivable | — | — | N/A | — | N/A | ||||||||||||||||||||
5 | Intercompany Receivables | 81,873,182 | — | 0 | % | — | 0 | % | ||||||||||||||||||
6 | Aircraft Fuel Inventory | — | — | N/A | — | N/A | ||||||||||||||||||||
7 | Prepaid Expenses and Other Current Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
8 | Flight Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
9 | Other Property and Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
10 | Intangible Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
11 | Investments and Other Assets | (54,751,402 | ) | — | 0 | % | — | 0 | % | |||||||||||||||||
12 | Preference and Avoidance Payment Recovery | — | — | — | ||||||||||||||||||||||
Total Assets/Proceeds (A) | $ | 27,121,779 | $ | — | 0 | % | $ | — | 0 | % | ||||||||||||||||
LIQUIDATION COSTS | ||||||||||||||||||||||||||
13 | Trustee Fees | — | — | |||||||||||||||||||||||
14 | Counsel for the Trustee and Related Professional Fees | — | — | |||||||||||||||||||||||
15 | Wind-Down Fees | — | — | |||||||||||||||||||||||
Total Liquidation Costs (B) | $ | — | $ | — | ||||||||||||||||||||||
Net Proceeds Available to Creditors (A — B) | $ | — | $ | — | ||||||||||||||||||||||
ESTIMATED RECOVERY TO CREDITORS (CLAIMS) | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Estimated Total | Estimated % of | Estimated Total | Estimated % of | |||||||||||||||||||||||
Estimated | Amount Paid to | Allowed Claim | Estimated | Amount Paid to | Allowed Claim | |||||||||||||||||||||
Notes | Allowed Claim | Creditors | Paid | Allowed Claim | Creditors | Paid | ||||||||||||||||||||
Net Proceeds Available to Super-Priority I/C Creditors: | $ | — | $ | — | ||||||||||||||||||||||
16 | Plus: Receipts from Super-Priority Intercompany Claims | — | 22,772,894 | N/A | — | 22,772,894 | N/A | |||||||||||||||||||
16 | Less: Distributions for Super-Priority Intercompany Claims | 53,468,640 | 22,772,894 | 43 | % | 53,468,640 | 22,772,894 | 43 | % | |||||||||||||||||
Net Proceeds Available for Secured, Admin, and Priority Creditors: | — | — | ||||||||||||||||||||||||
17 | Secured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
18 | Administrative Claims | 597,000,000 | — | 0 | % | 597,000,000 | — | 0 | % | |||||||||||||||||
19 | Priority Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Net Proceeds Available to Unsecured Creditors | — | — | ||||||||||||||||||||||||
20 | PBGC Unsecured Claims | 9,919,353,000 | — | 0.00 | % | 9,919,353,000 | — | 0.00 | % | |||||||||||||||||
21 | Intercompany Unsecured Claims | 79,553,411 | — | 0.00 | % | 79,553,411 | — | 0.00 | % | |||||||||||||||||
22 | Other Unsecured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Total Unsecured Claims | $ | 9,998,906,411 | $ | — | 0.00 | % | $ | 9,998,906,411 | $ | — | 0.00 | % | ||||||||||||||
1
Table of Contents
UNAUDITED
Notes | ||||||||||||||||||||||||||
1 | DIP REPAYMENT | |||||||||||||||||||||||||
Consolidated Cash and Short-Term Investments | $ | 1,591,973,081 | ||||||||||||||||||||||||
DIP Repayment | (906,814,911 | ) | ||||||||||||||||||||||||
Net Consolidated Cash and Short-Term Investments | 685,158,171 | |||||||||||||||||||||||||
Percentage of Cash Allocated to Air Wisconsin, Inc. | 0.00 | % | ||||||||||||||||||||||||
Air Wisconsin, Inc. Pro-rata Share of Cash and Short-Term Investments | $ | — | ||||||||||||||||||||||||
ASSETS & ESTIMATED REALIZATION | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Net Book Value | Estimated | Estimated | Estimated | Estimated | ||||||||||||||||||||||
June 30, 2005 | Value | Realization Rate | Value | Realization Rate | ||||||||||||||||||||||
2 | Cash and Short-Term Investments | $ | — | $ | — | N/A | $ | — | N/A | |||||||||||||||||
3 | Restricted Cash | — | — | N/A | — | N/A | ||||||||||||||||||||
4 | Accounts Receivable | 8,842,490 | 3,536,996 | 40 | % | 5,305,494 | 60 | % | ||||||||||||||||||
5 | Intercompany Receivables | 97,411,261 | — | 0 | % | — | 0 | % | ||||||||||||||||||
6 | Aircraft Fuel Inventory | — | — | N/A | — | N/A | ||||||||||||||||||||
7 | Prepaid Expenses and Other Current Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
8 | Flight Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
9 | Other Property and Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
10 | Intangible Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
11 | Investments and Other Assets | 31,501,350 | 5,882,204 | 19 | % | 8,350,503 | 27 | % | ||||||||||||||||||
12 | Preference and Avoidance Payment Recovery | — | — | — | ||||||||||||||||||||||
Total Assets/Proceeds (A) | $ | 137,755,100 | $ | 9,419,200 | 7 | % | $ | 13,655,997 | 10 | % | ||||||||||||||||
LIQUIDATION COSTS | ||||||||||||||||||||||||||
13 | Trustee Fees | 282,576 | 409,680 | |||||||||||||||||||||||
14 | Counsel for the Trustee and Related Professional Fees | 216,642 | 236,249 | |||||||||||||||||||||||
15 | Wind-Down Fees | 188,384 | 273,120 | |||||||||||||||||||||||
Total Liquidation Costs (B) | $ | 687,602 | $ | 919,049 | ||||||||||||||||||||||
Net Proceeds Available to Creditors (A — B) | $ | 8,731,599 | $ | 12,736,949 | ||||||||||||||||||||||
ESTIMATED RECOVERY TO CREDITORS (CLAIMS) | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Estimated Total | Estimated % of | Estimated Total | Estimated % of | |||||||||||||||||||||||
Estimated | Amount Paid to | Allowed Claim | Estimated | Amount Paid to | Allowed Claim | |||||||||||||||||||||
Notes | Allowed Claim | Creditors | Paid | Allowed Claim | Creditors | Paid | ||||||||||||||||||||
Net Proceeds Available to Super-Priority I/C Creditors: | $ | 8,731,599 | $ | 12,736,949 | ||||||||||||||||||||||
16 | Plus: Receipts from Super-Priority Intercompany Claims | — | 23,700,598 | N/A | — | 23,700,598 | N/A | |||||||||||||||||||
16 | Less: Distributions for Super-Priority Intercompany Claims | 60,818,462 | 32,432,197 | 53 | % | 60,818,462 | 36,437,547 | 60 | % | |||||||||||||||||
Net Proceeds Available for Secured, Admin, and Priority Creditors: | — | — | ||||||||||||||||||||||||
17 | Secured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
18 | Administrative Claims | 597,000,000 | — | 0 | % | 597,000,000 | — | 0 | % | |||||||||||||||||
19 | Priority Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Net Proceeds Available to Unsecured Creditors | — | — | ||||||||||||||||||||||||
20 | PBGC Unsecured Claims | 9,919,353,000 | — | 0.00 | % | 9,919,353,000 | — | 0.00 | % | |||||||||||||||||
21 | Intercompany Unsecured Claims | 220,222,752 | — | 0.00 | % | 220,222,752 | — | 0.00 | % | |||||||||||||||||
22 | Other Unsecured Claims | 84,697,084 | — | 0.00 | % | 78,060,737 | — | 0.00 | % | |||||||||||||||||
Total Unsecured Claims | $ | 10,224,272,836 | $ | — | 0.00 | % | $ | 10,217,636,489 | $ | — | 0.00 | % | ||||||||||||||
Table of Contents
HYPOTHETICAL LIQUIDATION ANALYSIS
UNAUDITED
Notes | ||||||||||||||||||||||||||
1 | DIP REPAYMENT | |||||||||||||||||||||||||
Consolidated Cash and Short-Term Investments | $ | 1,591,973,081 | ||||||||||||||||||||||||
DIP Repayment | (906,814,911 | ) | ||||||||||||||||||||||||
Net Consolidated Cash and Short-Term Investments | 685,158,171 | |||||||||||||||||||||||||
Percentage of Cash Allocated to Domicile Management | 0.01 | % | ||||||||||||||||||||||||
Domicile Management Pro-rata Share of Cash and Short-Term Investments | $ | 84,372 | ||||||||||||||||||||||||
ASSETS & ESTIMATED REALIZATION | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Net Book Value | Estimated | Estimated | Estimated | Estimated | ||||||||||||||||||||||
June 30, 2005 | Value | Realization Rate | Value | Realization Rate | ||||||||||||||||||||||
2 | Cash and Short-Term Investments | $ | 84,372 | $ | 84,372 | 100 | % | $ | 84,372 | 100 | % | |||||||||||||||
3 | Restricted Cash | — | — | N/A | — | N/A | ||||||||||||||||||||
4 | Accounts Receivable | (6,003 | ) | — | 0 | % | — | 0 | % | |||||||||||||||||
5 | Intercompany Receivables | 1,279,018 | — | 0 | % | — | 0 | % | ||||||||||||||||||
6 | Aircraft Fuel Inventory | — | — | N/A | — | N/A | ||||||||||||||||||||
7 | Prepaid Expenses and Other Current Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
8 | Flight Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
9 | Other Property and Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
10 | Intangible Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
11 | Investments and Other Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
12 | Preference and Avoidance Payment Recovery | — | — | — | ||||||||||||||||||||||
Total Assets/Proceeds (A) | $ | 1,357,387 | $ | 84,372 | 6 | % | $ | 84,372 | 6 | % | ||||||||||||||||
LIQUIDATION COSTS | ||||||||||||||||||||||||||
13 | Trustee Fees | — | — | |||||||||||||||||||||||
14 | Counsel for the Trustee and Related Professional Fees | — | — | |||||||||||||||||||||||
15 | Wind-Down Fees | — | — | |||||||||||||||||||||||
Total Liquidation Costs (B) | $ | — | $ | — | ||||||||||||||||||||||
Net Proceeds Available to Creditors (A — B) | $ | 84,372 | $ | 84,372 | ||||||||||||||||||||||
ESTIMATED RECOVERY TO CREDITORS (CLAIMS) | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Estimated Total | Estimated % of | Estimated Total | Estimated % of | |||||||||||||||||||||||
Estimated | Amount Paid to | Allowed Claim | Estimated | Amount Paid to | Allowed Claim | |||||||||||||||||||||
Notes | Allowed Claim | Creditors | Paid | Allowed Claim | Creditors | Paid | ||||||||||||||||||||
Net Proceeds Available to Super-Priority I/C Creditors: | $ | 84,372 | $ | 84,372 | ||||||||||||||||||||||
16 | Plus: Receipts from Super-Priority Intercompany Claims | — | 350,841 | N/A | — | 350,841 | N/A | |||||||||||||||||||
16 | Less: Distributions for Super-Priority Intercompany Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Net Proceeds Available for Secured, Admin, and Priority Creditors: | 435,213 | 435,213 | ||||||||||||||||||||||||
17 | Secured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
18 | Administrative Claims | 597,529,280 | 435,213 | 0 | % | 597,529,280 | 435,213 | 0 | % | |||||||||||||||||
19 | Priority Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Net Proceeds Available to Unsecured Creditors | — | — | ||||||||||||||||||||||||
20 | PBGC Unsecured Claims | 9,919,353,000 | — | 0.00 | % | 9,919,353,000 | — | 0.00 | % | |||||||||||||||||
21 | Intercompany Unsecured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
22 | Other Unsecured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Total Unsecured Claims | $ | 9,919,353,000 | $ | — | 0.00 | % | $ | 9,919,353,000 | $ | — | 0.00 | % | ||||||||||||||
Table of Contents
HYPOTHETICAL LIQUIDATION ANALYSIS
UNAUDITED
Notes | ||||||||||||||||||||||||||
1 | DIP REPAYMENT | |||||||||||||||||||||||||
Consolidated Cash and Short-Term Investments | $ | 1,591,973,081 | ||||||||||||||||||||||||
DIP Repayment | (906,814,911 | ) | ||||||||||||||||||||||||
Net Consolidated Cash and Short-Term Investments | 685,158,171 | |||||||||||||||||||||||||
Percentage of Cash Allocated to UAL Benefits Management | 0.00 | % | ||||||||||||||||||||||||
UAL Benefits Management Pro-rata Share of Cash and Short-Term Investments | $ | — | ||||||||||||||||||||||||
ASSETS & ESTIMATED REALIZATION | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Net Book Value | Estimated | Estimated | Estimated | Estimated | ||||||||||||||||||||||
June 30, 2005 | Value | Realization Rate | Value | Realization Rate | ||||||||||||||||||||||
2 | Cash and Short-Term Investments | $ | — | $ | — | N/A | $ | — | N/A | |||||||||||||||||
3 | Restricted Cash | — | — | N/A | — | N/A | ||||||||||||||||||||
4 | Accounts Receivable | — | �� | — | N/A | — | N/A | |||||||||||||||||||
5 | Intercompany Receivables | 204,091,000 | — | 0 | % | — | 0 | % | ||||||||||||||||||
6 | Aircraft Fuel Inventory | — | — | N/A | — | N/A | ||||||||||||||||||||
7 | Prepaid Expenses and Other Current Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
8 | Flight Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
9 | Other Property and Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
10 | Intangible Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
11 | Investments and Other Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
12 | Preference and Avoidance Payment Recovery | — | — | — | ||||||||||||||||||||||
Total Assets/Proceeds (A) | $ | 204,091,000 | $ | — | 0 | % | $ | — | 0 | % | ||||||||||||||||
LIQUIDATION COSTS | ||||||||||||||||||||||||||
13 | Trustee Fees | — | — | |||||||||||||||||||||||
14 | Counsel for the Trustee and Related Professional Fees | — | — | |||||||||||||||||||||||
15 | Wind-Down Fees | — | — | |||||||||||||||||||||||
Total Liquidation Costs (B) | $ | — | $ | — | ||||||||||||||||||||||
Net Proceeds Available to Creditors (A — B) | $ | — | $ | — | ||||||||||||||||||||||
ESTIMATED RECOVERY TO CREDITORS (CLAIMS) | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Estimated Total | Estimated % of | Estimated Total | Estimated % of | |||||||||||||||||||||||
Estimated | Amount Paid to | Allowed Claim | Estimated | Amount Paid to | Allowed Claim | |||||||||||||||||||||
Notes | Allowed Claim | Creditors | Paid | Allowed Claim | Creditors | Paid | ||||||||||||||||||||
Net Proceeds Available to Super-Priority I/C Creditors: | $ | — | $ | — | ||||||||||||||||||||||
16 | Plus: Receipts from Super-Priority Intercompany Claims | — | 22,431,957 | N/A | — | 22,431,957 | N/A | |||||||||||||||||||
16 | Less: Distributions for Super-Priority Intercompany Claims | 68,250,245 | 22,431,957 | 33 | % | 68,250,245 | 22,431,957 | 33 | % | |||||||||||||||||
Net Proceeds Available for Secured, Admin, and Priority Creditors: | — | — | ||||||||||||||||||||||||
17 | Secured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
18 | Administrative Claims | 597,000,000 | — | 0 | % | 597,000,000 | — | 0 | % | |||||||||||||||||
19 | Priority Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Net Proceeds Available to Unsecured Creditors | — | — | ||||||||||||||||||||||||
20 | PBGC Unsecured Claims | 9,919,353,000 | — | 0.00 | % | 9,919,353,000 | — | 0.00 | % | |||||||||||||||||
21 | Intercompany Unsecured Claims | 206,970,846 | — | 0.00 | % | 206,970,846 | — | 0.00 | % | |||||||||||||||||
22 | Other Unsecured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Total Unsecured Claims | $ | 10,126,323,846 | $ | — | 0.00 | % | $ | 10,126,323,846 | $ | — | 0.00 | % | ||||||||||||||
Table of Contents
HYPOTHETICAL LIQUIDATION ANALYSIS
UNAUDITED
Notes | ||||||||||||||||||||||||||||
1 | DIP REPAYMENT | |||||||||||||||||||||||||||
Consolidated Cash and Short-Term Investments | $ | 1,591,973,081 | ||||||||||||||||||||||||||
DIP Repayment | (906,814,911 | ) | ||||||||||||||||||||||||||
Net Consolidated Cash and Short-Term Investments | 685,158,171 | |||||||||||||||||||||||||||
Percentage of Cash Allocated to Bizjet Services | 0.00 | % | ||||||||||||||||||||||||||
Bizjet Services Pro-rata Share of Cash and Short-Term Investments | $ | — | ||||||||||||||||||||||||||
ASSETS & ESTIMATED REALIZATION | ||||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||||
Net Book Value | Estimated | Estimated | Estimated | Estimated | ||||||||||||||||||||||||
June 30, 2005 | Value | Realization Rate | Value | Realization Rate | ||||||||||||||||||||||||
2 | Cash and Short-Term Investments | $ | — | $ | — | N/A | $ | — | N/A | |||||||||||||||||||
3 | Restricted Cash | — | — | N/A | — | N/A | ||||||||||||||||||||||
4 | Accounts Receivable | — | 38,433,402 | N/A | 38,433,402 | N/A | ||||||||||||||||||||||
5 | Intercompany Receivables | 7,173,295 | — | 0 | % | — | 0 | % | ||||||||||||||||||||
6 | Aircraft Fuel Inventory | — | — | N/A | — | N/A | ||||||||||||||||||||||
7 | Prepaid Expenses and Other Current Assets | — | — | N/A | — | N/A | ||||||||||||||||||||||
8 | Flight Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||||
9 | Other Property and Equipment | 11,566,598 | 11,566,598 | 100 | % | 11,566,598 | 100 | % | ||||||||||||||||||||
10 | Intangible Assets | — | — | N/A | — | N/A | ||||||||||||||||||||||
11 | Investments and Other Assets | — | — | N/A | — | N/A | ||||||||||||||||||||||
12 | Preference and Avoidance Payment Recovery | — | — | — | ||||||||||||||||||||||||
Total Assets/Proceeds (A) | $ | 18,739,893 | $ | 50,000,000 | 267 | % | $ | 50,000,000 | 267 | % | ||||||||||||||||||
LIQUIDATION COSTS | ||||||||||||||||||||||||||||
13 | Trustee Fees | 1,500,000 | 1,500,000 | |||||||||||||||||||||||||
14 | Counsel for the Trustee and Related Professional Fees | 1,150,000 | 865,000 | |||||||||||||||||||||||||
15 | Wind-Down Fees | 1,000,000 | 1,000,000 | |||||||||||||||||||||||||
Total Liquidation Costs (B) | $ | 3,650,000 | $ | 3,365,000 | ||||||||||||||||||||||||
Net Proceeds Available to Creditors (A — B) | $ | 46,350,000 | $ | 46,635,000 | ||||||||||||||||||||||||
ESTIMATED RECOVERY TO CREDITORS (CLAIMS) | ||||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||||
Estimated Total | Estimated % of | Estimated Total | Estimated % of | |||||||||||||||||||||||||
Estimated | Amount Paid to | Allowed Claim | Estimated | Amount Paid to | Allowed Claim | |||||||||||||||||||||||
Notes | Allowed Claim | Creditors | Paid | Allowed Claim | Creditors | Paid | ||||||||||||||||||||||
Net Proceeds Available to Super-Priority I/C Creditors: | $ | 46,350,000 | $ | 46,635,000 | ||||||||||||||||||||||||
16 | Plus: Receipts from Super-Priority Intercompany Claims | — | 10,078,725 | N/A | — | 10,078,725 | N/A | |||||||||||||||||||||
16 | Less: Distributions for Super-Priority Intercompany Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||||
Net Proceeds Available for Secured, Admin, and Priority Creditors: | 56,428,725 | 56,713,725 | ||||||||||||||||||||||||||
17 | Secured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||||
18 | Administrative Claims | 597,000,000 | 56,428,725 | 9 | % | 597,000,000 | 56,713,725 | 9 | % | |||||||||||||||||||
19 | Priority Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||||
Net Proceeds Available to Unsecured Creditors | — | — | ||||||||||||||||||||||||||
20 | PBGC Unsecured Claims | 9,919,353,000 | — | 0.00 | % | 9,919,353,000 | — | 0.00 | % | |||||||||||||||||||
21 | Intercompany Unsecured Claims | 26,353,121 | — | 0.00 | % | 26,353,121 | — | 0.00 | % | |||||||||||||||||||
22 | Other Unsecured Claims | 23,288 | — | 0.00 | % | 23,288 | — | 0.00 | % | |||||||||||||||||||
Total Unsecured Claims | $ | 9,945,729,409 | $ | — | 0.00 | % | $ | 9,945,729,409 | $ | — | 0.00 | % | ||||||||||||||||
Table of Contents
HYPOTHETICAL LIQUIDATION ANALYSIS
UNAUDITED
Notes | ||||||||||||||||||||||||||
1 | DIP REPAYMENT | |||||||||||||||||||||||||
Consolidated Cash and Short-Term Investments | $ | 1,591,973,081 | ||||||||||||||||||||||||
DIP Repayment | (906,814,911 | ) | ||||||||||||||||||||||||
Net Consolidated Cash and Short-Term Investments | 685,158,171 | |||||||||||||||||||||||||
Percentage of Cash Allocated to Bizjet Charter | 0.00 | % | ||||||||||||||||||||||||
Bizjet Charter Pro-rata Share of Cash and Short-Term Investments | $ | — | ||||||||||||||||||||||||
ASSETS & ESTIMATED REALIZATION | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Net Book Value | Estimated | Estimated | Estimated | Estimated | ||||||||||||||||||||||
June 30, 2005 | Value | Realization Rate | Value | Realization Rate | ||||||||||||||||||||||
2 | Cash and Short-Term Investments | $ | — | $ | — | N/A | $ | — | N/A | |||||||||||||||||
3 | Restricted Cash | — | — | N/A | — | N/A | ||||||||||||||||||||
4 | Accounts Receivable | — | — | N/A | — | N/A | ||||||||||||||||||||
5 | Intercompany Receivables | — | — | N/A | — | N/A | ||||||||||||||||||||
6 | Aircraft Fuel Inventory | — | — | N/A | — | N/A | ||||||||||||||||||||
7 | Prepaid Expenses and Other Current Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
8 | Flight Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
9 | Other Property and Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
10 | Intangible Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
11 | Investments and Other Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
12 | Preference and Avoidance Payment Recovery | — | — | — | ||||||||||||||||||||||
Total Assets/Proceeds (A) | $ | — | $ | — | N/A | $ | — | N/A | ||||||||||||||||||
LIQUIDATION COSTS | ||||||||||||||||||||||||||
13 | Trustee Fees | — | — | |||||||||||||||||||||||
14 | Counsel for the Trustee and Related Professional Fees | — | — | |||||||||||||||||||||||
15 | Wind-Down Fees | — | — | |||||||||||||||||||||||
Total Liquidation Costs (B) | $ | — | $ | — | ||||||||||||||||||||||
Net Proceeds Available to Creditors (A - B) | $ | — | $ | — | ||||||||||||||||||||||
ESTIMATED RECOVERY TO CREDITORS (CLAIMS) | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Estimated Total | Estimated % of | Estimated Total | Estimated % of | |||||||||||||||||||||||
Estimated | Amount Paid to | Allowed Claim | Estimated | Amount Paid to | Allowed Claim | |||||||||||||||||||||
Notes | Allowed Claim | Creditors | Paid | Allowed Claim | Creditors | Paid | ||||||||||||||||||||
Net Proceeds Available to Super-Priority I/C Creditors: | $ | — | $ | — | ||||||||||||||||||||||
16 | Plus: Receipts from Super-Priority Intercompany Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
16 | Less: Distributions for Super-Priority Intercompany Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Net Proceeds Available for Secured, Admin, and Priority Creditors: | — | — | ||||||||||||||||||||||||
17 | Secured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
18 | Administrative Claims | 597,000,000 | — | 0 | % | 597,000,000 | — | 0 | % | |||||||||||||||||
19 | Priority Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Net Proceeds Available to Unsecured Creditors | — | — | ||||||||||||||||||||||||
20 | PBGC Unsecured Claims | 9,919,353,000 | — | 0.00 | % | 9,919,353,000 | — | 0.00 | % | |||||||||||||||||
21 | Intercompany Unsecured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
22 | Other Unsecured Claims | 587 | — | 0.00 | % | 587 | — | 0.00 | % | |||||||||||||||||
Total Unsecured Claims | $ | 9,919,353,587 | $ | — | 0.00 | % | $ | 9,919,353,587 | $ | — | 0.00 | % | ||||||||||||||
Table of Contents
HYPOTHETICAL LIQUIDATION ANALYSIS
UNAUDITED
Notes | ||||||||||||||||||||||||||
1 | DIP REPAYMENT | |||||||||||||||||||||||||
Consolidated Cash and Short-Term Investments | $ | 1,591,973,081 | ||||||||||||||||||||||||
DIP Repayment | (906,814,911 | ) | ||||||||||||||||||||||||
Net Consolidated Cash and Short-Term Investments | 685,158,171 | |||||||||||||||||||||||||
Percentage of Cash Allocated to Bizjet Fractional | 0 | % | ||||||||||||||||||||||||
Bizjet Fractional Pro-rata Share of Cash and Short-Term Investments | $ | — | ||||||||||||||||||||||||
ASSETS & ESTIMATED REALIZATION | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Net Book Value | Estimated | Estimated | Estimated | Estimated | ||||||||||||||||||||||
June 30, 2005 | Value | Realization Rate | Value | Realization Rate | ||||||||||||||||||||||
2 | Cash and Short-Term Investments | $ | — | $ | — | N/A | $ | — | N/A | |||||||||||||||||
3 | Restricted Cash | — | — | N/A | — | N/A | ||||||||||||||||||||
4 | Accounts Receivable | — | — | N/A | — | N/A | ||||||||||||||||||||
5 | Intercompany Receivables | — | — | N/A | — | N/A | ||||||||||||||||||||
6 | Aircraft Fuel Inventory | — | — | N/A | — | N/A | ||||||||||||||||||||
7 | Prepaid Expenses and Other Current Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
8 | Flight Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
9 | Other Property and Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
10 | Intangible Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
11 | Investments and Other Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
12 | Preference and Avoidance Payment Recovery | — | — | — | ||||||||||||||||||||||
Total Assets/Proceeds (A) | $ | — | $ | — | N/A | $ | — | N/A | ||||||||||||||||||
LIQUIDATION COSTS | ||||||||||||||||||||||||||
13 | Trustee Fees | — | — | |||||||||||||||||||||||
14 | Counsel for the Trustee and Related Professional Fees | — | — | |||||||||||||||||||||||
15 | Wind-Down Fees | — | — | |||||||||||||||||||||||
Total Liquidation Costs (B) | $ | — | $ | — | ||||||||||||||||||||||
Net Proceeds Available to Creditors (A — B) | $ | — | $ | — | ||||||||||||||||||||||
ESTIMATED RECOVERY TO CREDITORS (CLAIMS) | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Estimated Total | Estimated % of | Estimated Total | Estimated % of | |||||||||||||||||||||||
Estimated | Amount Paid to | Allowed Claim | Estimated | Amount Paid to | Allowed Claim | |||||||||||||||||||||
Notes | Allowed Claim | Creditors | Paid | Allowed Claim | Creditors | Paid | ||||||||||||||||||||
Net Proceeds Available to Super-Priority I/C Creditors: | $ | — | $ | — | ||||||||||||||||||||||
16 | Plus: Receipts from Super-Priority Intercompany Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
16 | Less: Distributions for Super-Priority Intercompany Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
�� | ||||||||||||||||||||||||||
Net Proceeds Available for Secured, Admin, and Priority Creditors: | — | — | ||||||||||||||||||||||||
17 | Secured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
18 | Administrative Claims | 597,000,000 | — | 0 | % | 597,000,000 | — | 0 | % | |||||||||||||||||
19 | Priority Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Net Proceeds Available to Unsecured Creditors | — | — | ||||||||||||||||||||||||
20 | PBGC Unsecured Claims | 9,919,353,000 | — | 0.00 | % | 9,919,353,000 | — | 0.00 | % | |||||||||||||||||
21 | Intercompany Unsecured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
22 | Other Unsecured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Total Unsecured Claims | $ | 9,919,353,000 | $ | — | 0.00 | % | $ | 9,919,353,000 | $ | — | 0.00 | % | ||||||||||||||
Table of Contents
HYPOTHETICAL LIQUIDATION ANALYSIS
UNAUDITED
Notes | ||||||||||||||||||||||||||
1 | DIP REPAYMENT | |||||||||||||||||||||||||
Consolidated Cash and Short-Term Investments | $ | 1,591,973,081 | ||||||||||||||||||||||||
DIP Repayment | (906,814,911 | ) | ||||||||||||||||||||||||
Net Consolidated Cash and Short-Term Investments | 685,158,171 | |||||||||||||||||||||||||
Percentage of Cash Allocated to Bizjet Services | 0.00 | % | ||||||||||||||||||||||||
Bizjet Services Pro-rata Share of Cash and Short-Term Investments | $ | — | ||||||||||||||||||||||||
ASSETS & ESTIMATED REALIZATION | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Net Book Value | Estimated | Estimated | Estimated | Estimated | ||||||||||||||||||||||
June 30, 2005 | Value | Realization Rate | Value | Realization Rate | ||||||||||||||||||||||
2 | Cash and Short-Term Investments | $ | — | $ | — | N/A | $ | — | N/A | |||||||||||||||||
3 | Restricted Cash | — | — | N/A | — | N/A | ||||||||||||||||||||
4 | Accounts Receivable | — | — | N/A | — | N/A | ||||||||||||||||||||
5 | Intercompany Receivables | — | — | N/A | — | N/A | ||||||||||||||||||||
6 | Aircraft Fuel Inventory | — | — | N/A | — | N/A | ||||||||||||||||||||
7 | Prepaid Expenses and Other Current Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
8 | Flight Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
9 | Other Property and Equipment | — | — | N/A | — | N/A | ||||||||||||||||||||
10 | Intangible Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
11 | Investments and Other Assets | — | — | N/A | — | N/A | ||||||||||||||||||||
12 | Preference and Avoidance Payment Recovery | — | — | — | ||||||||||||||||||||||
Total Assets/Proceeds (A) | $ | — | $ | — | N/A | $ | — | N/A | ||||||||||||||||||
LIQUIDATION COSTS | ||||||||||||||||||||||||||
13 | Trustee Fees | — | — | |||||||||||||||||||||||
14 | Counsel for the Trustee and Related Professional Fees | — | — | |||||||||||||||||||||||
15 | Wind-Down Fees | — | — | |||||||||||||||||||||||
Total Liquidation Costs (B) | $ | — | $ | — | ||||||||||||||||||||||
Net Proceeds Available to Creditors (A — B) | $ | — | $ | — | ||||||||||||||||||||||
ESTIMATED RECOVERY TO CREDITORS (CLAIMS) | ||||||||||||||||||||||||||
Forced Liquidation Value | Orderly Liquidation Value | |||||||||||||||||||||||||
Estimated Total | Estimated % of | Estimated Total | Estimated % of | |||||||||||||||||||||||
Estimated | Amount Paid to | Allowed Claim | Estimated | Amount Paid to | Allowed Claim | |||||||||||||||||||||
Notes | Allowed Claim | Creditors | Paid | Allowed Claim | Creditors | Paid | ||||||||||||||||||||
Net Proceeds Available to Super-Priority I/C Creditors: | $ | — | $ | — | ||||||||||||||||||||||
16 | Plus: Receipts from Super-Priority Intercompany Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
16 | Less: Distributions for Super-Priority Intercompany Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Net Proceeds Available for Secured, Admin, and Priority Creditors: | — | — | ||||||||||||||||||||||||
17 | Secured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
18 | Administrative Claims | 597,000,000 | — | 0 | % | 597,000,000 | — | 0 | % | |||||||||||||||||
19 | Priority Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Net Proceeds Available to Unsecured Creditors | — | — | ||||||||||||||||||||||||
20 | PBGC Unsecured Claims | 9,919,353,000 | — | 0.00 | % | 9,919,353,000 | — | 0.00 | % | |||||||||||||||||
21 | Intercompany Unsecured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
22 | Other Unsecured Claims | — | — | N/A | — | — | N/A | |||||||||||||||||||
Total Unsecured Claims | $ | 9,919,353,000 | $ | — | 0.00 | % | $ | 9,919,353,000 | $ | — | 0.00 | % | ||||||||||||||
Table of Contents
Appendix C |
Summary Going Concern Valuation Report (Preliminary Draft) In re UAL Corporation, et al. |
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Disclaimer This exhibit was prepared by Rothschild Inc. ("Rothschild") for the benefit and internal use of United Airlines, Inc. ("UAL", "United", or the "Company"). In providing this presentation Rothschild has relied upon information that is publicly available or which was provided to Rothschild by or on behalf of the Company's management, including management operating and financial forecasts, and reflects Rothschild's view and prevailing financial and market conditions as of the date hereof, all of which are accordingly subject to change. Rothschild has not assumed any responsibility for independent verification of any of the information contained herein including, but not limited to, any forecasts or projections set forth herein. In addition, Rothschild assumes no obligation to update or to correct any inaccuracies which may become apparent in this presentation and the analyses contained herein are not and do not purport to be appraisals of the assets, stock or business of the Company. Nothing contained herein shall be deemed to be a recommendation from Rothschild to any party, including without limitation, any security holder of the Company to enter into any transaction or to take any course of action. |
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9.7x - 12.5x 2005E PF EBITDAR 4.9x - 6.3x 2006E EBITDAR 1.1 Summary enterprise valuation range 1. Preliminary Valuation Preliminary Valuation Enterprise valuation range ($ in billions) 6.8x - 11.6x 2005E PF EBITDAR 3.4x - 5.8x 2006E EBITDAR 8 - 9% discount rate; terminal values based on perpetuity growth rates of 0%, 1% and 2% 11.8x - 13.9x 2005E PF EBITDAR 5.9x - 7.0x 2006E EBITDAR COMMENTS 10.5x - 12.0x 2005E PF EBITDAR 5.3x - 6.0x 2006E EBITDAR The summary TEV range of $10.9 billion and $14.0 billion set forth below is based on an equal weighting of the three methodologies $12.5 |
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Total Equity Value is derived by subtracting net debt from TEV and adding Rothschild's valuation of the Company's NOL The range of Total Equity Value is $0.3 billion to $3.5 billion, with a mid-point value of $1.9 billion 1.2 Summary equity valuation Implied Total Equity Value and implied Total Enterprise Value multiples analysis ($ in millions) Preliminary Valuation 1. Preliminary Valuation Notes At assumed Emergence date of December 1, 2005, Net Indebtedness includes Long Term Aircraft Debt of $6.0 billion, Exit Financing of $2.5 billion, Capitalized Aircraft Rent (capitalized at 7x 2006E Aircraft Rent Expense) of $3.5 billion, Municipal Bonds of $510 million, O'Hare Convertible Bonds of $150 million, PBGC Notes of $500 million (par value), Employee Notes of $709 million (par value), Minority Interest of $6 million, and PBGC Preferred Stock of $500 million, less Unrestricted Cash of $2.7 billion |
Table of Contents
The Comparable Companies Analysis provides insight into how the public markets value comparable businesses with similar industry and growth profiles to UAL For UAL, this analysis is inherently challenged given the dramatic conditions facing the industry, which include a host of factors some of which are set forth below Post 9/11 operating environment Fuel price volatility Burdensome legacy costs and pension liabilities Continued growth of internet ticket purchases resulting in increased pricing pressures Fiercely competitive environment due to industry overcapacity and LCC penetration Widespread financial distress among North American NCs Based on these factors, Rothschild considered a range of companies in its Comparable Companies Analysis North American NCs, including both current and historical multiples(1) Domestic LCCs Selected international carriers 2.1 Summary overview 2. Comparable Companies Analysis Comparable Companies Analysis Notes (1) For purposes of comparable valuation, current network carriers are focused on American, Continental and Air Canada |
Table of Contents
Rothschild ultimately incorporated the network carriers' current and historical market multiples into the Comparable Companies Analysis, with the preponderance of its weighting on the current market multiples of the NCs LCCs and selected international carriers were excluded from the Comparable Companies Analysis due to their vastly different business models 2.1 Summary overview (cont'd) 2. Comparable Companies Analysis Comparable Companies Analysis The Comparable Companies Analysis implies a Total Enterprise Value range of $7.7 billion and $13.0 billion, with a midpoint value of $10.3 billion |
Table of Contents
3.1 Precedent Transactions Analysis overview 3. Precedent Transactions Analysis The Precedent Transaction Analysis provides a valuation range based on analysis of M&A and recapitalization transactions that have similar risks and opportunities as United For the purposes of valuing United, Rothschild focused on 11 change of control transactions for domestic and international carriers with Total Enterprise Values in excess of $600 million The precedent transactions analysis implies a TEV range for UAL of $11.8 billion to $13.4, with a midpoint value of $12.6 Precedent Transactions Analysis |
Table of Contents
4.1 Discounted cash flow analysis overview DCF analysis implies total enterprise value of $13.3 - $15.7 billion (1) 4. Discounted Cash Flow Analysis The DCF analysis values the Company's business plan by discounting future cash flows at a rate reflecting the company-specific risk factors and an assumed time value of money Based on projected cash flows through December 31, 2010 per Gershwin 6.0, the Debtor's current business plan Cash flows potentially impacted by General macroeconomic conditions Disruptive industry forces Successful reorganization / capitalization of UAL for its exit from Chapter 11 The projections are discounted to November 30, 2005, the assumed confirmation date, using a discount rate equal to the weighted average cost of capital (the "WACC") ranging from 8.0% to 9.0% which considers the weighted average of the marginal costs of all sources of capital 8.0% to 9.0% is generally consistent with the historic WACC for peers in the airline industry Terminal value calculated using the perpetuity growth methodology Assumes a rate of growth of free cash flows in perpetuity with capital expenditures adjusted to reflect normalized long-term aircraft related capital spending requirements Assumed perpetuity growth rates of 0.0%, 1.0% and 2.0%, brought back to present value as of November 30, 2005 using a discount rate of between 8.0% - 9.0% as discussed above Discounted Cash Flow Analysis Notes Utilizing an 8.5% discount rate and perpetuity growth rates of 0.0%, 1.0% and 2.0% |
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Since an NOL provides a tax shield on future earnings, its value is typically reflected in the equity of an enterprise. Rothschild's NOL valuation reflects the present value of the savings achieved by the pre-tax income shielded by the loss carry forward Rothschild relied on the following assumptions in valuing the NOL(1) UAL estimates NOL of approximately $7.5 billion as of December 1, 2005 (2) Based on tax planning assumptions and pursuant to Section 382 (l)(6) of the Internal Revenue Code ("IRC") and other relevant IRS notifications, the Company has projected that its average limitation approximates $1.2 billion per annum (3) 37.3% effective tax rate as per Gershwin 6.0, the Debtor's current business plan The discount rate assumption of 20-30% is the adjusted cost of equity based on NOL application after interest expense deductions Rothschild's analysis suggests a range of value for the Company's NOL of $1.1 billion to $1.4 billion For purpose of calculating Total Equity Value, Rothschild relied on a $1.1 billion valuation of UAL's NOL, as it represents the high end of the discount range (30%), thereby accounting for potentially disqualifying future changes of control and changes in the IRC 5. Preliminary NOL Valuation 5.1 NOL valuation summary Preliminary NOL Valuation Notes UAL and its tax advisors continue to refine the assumptions regarding the NOL and its treatment; assumptions are subject to change Assumed exit date in G6.0, the Debtor's current business plan For illustrative purposes only, the amount shown here is the average over the projection period. Per management estimates, the period adjusted Section 382 NOL limitation from 2006 - 2010P is estimated in the millions to be $741, $1,841, $1,441, $1,141 and $941 respectively |
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1 | Capitalized terms that are not otherwise defined herein shall have the meaning ascribed to them in the Plan or Disclosure Statement, as applicable. | |
2 | Because the Projections assume an Effective Date of February 1, 2006, the Projections for 2006 include one month of projected results for the Debtors (January) and 11 months of projected results for Reorganized Debtors (February through December). |
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3 | Historic Passenger Revenue in the Projected Income Statement has been adjusted to be consistent with (i) a change in accounting with respect to Marketing Programs Passenger Revenue, as disclosed in Item 1 of UAL’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2005 under the heading “UAL Loyalty Services, LLC,” and (ii) treat charter revenues as “Other Revenues” in the Projections. As a result, the individual components of Operating Revenues in the Projected Income Statement for 2002 through 2004 do not track to the 10-Ks issued for those years. |
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(i) | Core Passenger Revenues |
(ii) | Marketing Programs Passenger Revenue |
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(i) | New Credit Facility: The Projections assume 100% debt financing in the amount of $2.5 billion. The Debtors have not completed negotiations for a New Credit Facility. However, the Debtors’ management believes that, based on proposals received to date and currently being negotiated, the assumptions included in the Projections for the New Credit Facility are likely to be representative of the New Credit Facility ultimately achieved. The Debtors anticipate that the New Credit Facility will have a 5 year final maturity, require $100 million in annual principal repayments, and will carry a floating interest rate equal to LIBOR + 450 basis points. The Debtors further anticipate that the New Credit Facility will be secured by a first lien on substantially all unencumbered assets of the Debtors which currently secure the DIP Facility. Covenants are anticipated to include minimum liquidity requirements, annual capital expenditure limitations, minimum collateral value to loan ratio, and a minimum EBITDAR requirement. The primary use of the New Credit Facility will be to retire the DIP Facility, consummate the Plan, and provide incremental liquidity. |
(ii) | DIP Facility: The existing DIP Facility is comprised of a tranche A term loan and a tranche B revolver with an aggregate commitment of $1.3 billion. The estimated then outstanding balance of $1.1 billion will be paid on the Effective Date using funds provided from the New Credit Facility. In addition, the Debtors have negotiated a tranche C to the DIP Facility to provide interim financing for the purchase of 1997-1 EETC Transaction A certificates (seeOperating Expenses -Aircraft Rentabove). The Debtors anticipate refinancing this interim financing prior to or on the Effective Date. |
(iii) | Aircraft Debt: The Debtors historically financed portions of its aircraft fleet with various publicly and privately held mortgage and capital lease transactions, the restructuring of which the Debtors have substantially completed and have reflected in the Projections. Pending approval of the agreements-in-principle with holders of the publicly held transactions, only the 1997-1 EETC Transaction, covering 14 aircraft, remains to be resolved. Pending completion of these negotiations and on the assumption of a permanent refinancing, the Projections assume the 1997-1 EETC Transaction A certificates remain in liabilities subject to compromise and are reclassified as aircraft debt on the Effective Date. |
(iv) | New UAL Debt Securities: Pursuant to the Plan, the Debtors are extinguishing approximately $735 million of various pre-petition unsecured senior notes and other securities, currently classified as liabilities subject to compromise. However, also pursuant to the Plan, the Debtors anticipate issuing $1,359 million of new unsecured notes and other securities in satisfaction of claims |
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pursuant to the labor cost restructuring, the PBGC Settlement Agreement, and the settlement with Chicago Municipal Bond holders (together, the “New UAL Debt Securities”).4 The specific terms associated with the various New UAL Debt Securities, including conversion rights, vary between issuances (see Article IV.E of the Disclosure Statement for additional details). These New UAL Debt Securities generally require minimal cash outlays over the Projection Period. | |||
The Debtors’ anticipate establishing the terms for (a) the $150 million of New UAL O’Hare Bonds to be issued to the Chicago Municipal Bond holders, and (b) the $709 million of New UAL Convertible Employee Notes to be issued to employees such that the issuances trade at par post-emergence. Accordingly, no discount is incorporated in the Projections with respect to these securities. The Projections include management’s estimate for the terms associated with these debt obligations, which include no amortization payments during the Projection Period. | |||
The debt securities to be issued pursuant to the PBGC Settlement Agreement include $500 million of 6% senior subordinated notes (New UAL Senior Notes) and up to $500 million of 8% contingent notes (New UAL Contingent Senior Notes). As discussed further below, the Debtors will adopt fresh start reporting upon emergence from Chapter 11 and will record the carrying amounts of its debt at present values of amounts to be paid at estimated market interest rates. As a result, the Projections include a $223 million discount associated with the PBGC New UAL Senior Notes that will be amortized to interest expense in future periods. The terms of the New UAL Senior Notes provide for no amortization payments and for interest to be paid-in-kind during the Projection Period. The Projections do not include the PBGC New UAL Contingent Senior Notes since the performance levels required to trigger issuance of such notes are not projected to be achieved during the Projection Period. | |||
(v) | Convertible Preferred Stock. In addition to the New UAL Senior Notes and the New UAL Contingent Senior Notes, the Debtors will issue $500 million face value of convertible preferred stock to PBGC in accordance with the PBGC Settlement Agreement. This convertible preferred stock is convertible into common stock of the Reorganized Debtors. The 2% annual dividends associated with this preferred stock are paid in-kind and do not impact the income statement. The Reorganized Debtors have recorded this convertible preferred stock at its estimated fair market value. Class IAM Junior Preferred Stock and Class Pilot MEC Junior Preferred Stock are also set to be issued pursuant to the Plan, however, these are voting securities to which no value is attributable. |
4 | The following debt securities are being issued pursuant to the Plan: (a) New UAL Contingent Senior Notes, (b) New UAL Convertible Employee Notes, (c) New UAL O’Hare Bonds, and (d) New UAL Senior Notes. |
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(vi) | Common Equity. As discussed below, fresh start reporting results in a common equity value derived in part from the estimated enterprise value of the Reorganized Debtors. The Debtors have estimated a common equity value for the Reorganized Debtors of $1.9 billion. To the extent the Debtors commence a Rights Offering as discussed in the Plan, the proceeds would be incremental to the $1.9 billion estimated common equity value and would provide additional liquidity to the Debtors. No assumptions regarding a Rights Offering have been included in the Projections. |
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(i) | Current Assets:The Debtors anticipate that their current assets are reflected at current market value. As a result, no fresh start adjustment has been included in the Projections for these assets. | ||
(ii) | Operating property and equipment, net:A fresh start adjustment of approximately $2.4 billion was made to reduce the values of the fixed assets to their estimated fair market value and also reflects a pro-rata allocation of the excess of fair value of these assets to reorganization value. | ||
(iii) | Intangibles Assets:A fresh start adjustment of approximately $3.6 billion was made to allocate reorganization value to identified intangible assets. These intangible assets reflect the estimated fair market value of the Debtors’ domestic slots, international route authorities, and Mileage Plus customer database, as well as various other identified intangible assets. The recorded value of these identified intangible assets also reflects apro rataallocation of the excess of fair value of these assets to reorganization value. Certain of these assets, such as the international route authorities, are expected to have an indefinite estimated remaining life as they are considered renewable intangible assets and, therefore, have no associated amortization forecast as a result. The carrying value of these indefinite lived assets will be subject to annual impairment review under Statement of Financial Accounting No. 142Goodwill and Other Intangible Assets.The various remaining intangible assets have estimated useful lives ranging from two years to nine years over which the assets are amortized. | ||
(iv) | Liabilities Subject to Compromise:An adjustment of approximately (a) $8.9 billion was made to record the discharge of indebtedness pursuant to the Plan, and (b) $0.3 billion to recognize certain reinstated Aircraft Debt at market rates. The payment for convenience class creditors, accrued expenses, short term and long term debt, deferred gains and other liabilities is also discussed in Article III of the Plan. In addition, $6.2 billion of long-term debt, accrued expenses and other current liabilities are being reclassified to their appropriate balance sheet accounts, and $1.5 billion of new debt and preferred stock securities are being issued in satisfaction of claims. | ||
(v) | Post Retirement Liabilities:A fresh start adjustment of $50 million was made to record unrecognized projected benefit liabilities, prior service costs and unrecognized gains/losses. | ||
(vi) | Total Stockholders Equity (Deficit):Adopting fresh start reporting results in a new reporting entity with no retained earnings or deficit. All pre-existing common stock is removed and replaced by the new equity structure based on Article III of the Plan. The fresh start adjustments include an initial shareholders’ common equity value determined by subtracting the re-valued liabilities and newly issued preferred stock of the Debtors’ from the estimated enterprise value of the Reorganized Debtors. |
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Projected Income Statement
($ Millions)
Actual | Actual | Actual | Act/Proj | Projected | Projected | Projected | Projected | Projected | ||||||||||||||||||||||||||||
2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | ||||||||||||||||||||||||||||
Operating Revenue: | ||||||||||||||||||||||||||||||||||||
Mainline Passenger | $ | 12,175 | $ | 11,229 | $ | 12,416 | $ | 12,667 | $ | 13,128 | $ | 13,488 | $ | 13,874 | $ | 14,163 | $ | 14,458 | ||||||||||||||||||
Regional Affiliates | 1,281 | 1,529 | 1,931 | 2,370 | 2,556 | 2,672 | 2,736 | 2,785 | 2,844 | |||||||||||||||||||||||||||
Total Passenger Revenue | 13,456 | 12,758 | 14,347 | 15,037 | 15,684 | 16,160 | 16,610 | 16,948 | 17,302 | |||||||||||||||||||||||||||
Cargo | 673 | 630 | 704 | 735 | 750 | 766 | 778 | 783 | 789 | |||||||||||||||||||||||||||
UAFC | 913 | 704 | 408 | 244 | 158 | 139 | 141 | 143 | 145 | |||||||||||||||||||||||||||
Other | 780 | 836 | 932 | 1,032 | 1,191 | 1,371 | 1,370 | 1,417 | 1,509 | |||||||||||||||||||||||||||
Total Operating Revenue | 15,822 | 14,928 | 16,391 | 17,048 | 17,783 | 18,436 | 18,898 | 19,290 | 19,746 | |||||||||||||||||||||||||||
Operating Expenses: | ||||||||||||||||||||||||||||||||||||
Salaries and related costs | 7,018 | 5,377 | 5,006 | 4,127 | 3,857 | 3,835 | 3,902 | 3,981 | 4,061 | |||||||||||||||||||||||||||
Profit Sharing | — | — | — | — | 30 | 157 | 229 | 252 | 295 | |||||||||||||||||||||||||||
Aircraft Fuel | 1,921 | 2,072 | 2,943 | 3,759 | 3,409 | 3,402 | 3,401 | 3,391 | 3,391 | |||||||||||||||||||||||||||
Aircraft Maintenance | 560 | 572 | 747 | 873 | 966 | 1,030 | 1,036 | 1,110 | 1,168 | |||||||||||||||||||||||||||
Aircraft Rent | 851 | 612 | 533 | 371 | 504 | 520 | 511 | 503 | 497 | |||||||||||||||||||||||||||
Landing Fees & Other Rent | 1,021 | 930 | 964 | 957 | 1,021 | 1,044 | 1,089 | 1,146 | 1,198 | |||||||||||||||||||||||||||
Depreciation & Amortization | 960 | 968 | 874 | 809 | 741 | 744 | 724 | 772 | 816 | |||||||||||||||||||||||||||
Regional Affiliates | 1,621 | 1,921 | 2,425 | 2,818 | 2,654 | 2,674 | 2,704 | 2,736 | 2,759 | |||||||||||||||||||||||||||
UAFC | 904 | 720 | 431 | 241 | 157 | 139 | 140 | 142 | 144 | |||||||||||||||||||||||||||
Other | 3,654 | 3,090 | 3,322 | 3,390 | 3,528 | 3,524 | 3,502 | 3,563 | 3,650 | |||||||||||||||||||||||||||
Total Operating Expenses | 18,510 | 16,262 | 17,245 | 17,343 | 16,867 | 17,070 | 17,239 | 17,597 | 17,980 | |||||||||||||||||||||||||||
Operating Income/(Expense) | (2,688 | ) | (1,334 | ) | (854 | ) | (295 | ) | 916 | 1,366 | 1,659 | 1,694 | 1,766 | |||||||||||||||||||||||
Interest Income (Expense) | (505 | ) | (469 | ) | (423 | ) | (428 | ) | (545 | ) | (507 | ) | (420 | ) | (330 | ) | (175 | ) | ||||||||||||||||||
Other | 154 | 449 | 157 | 59 | (22 | ) | (22 | ) | (22 | ) | (22 | ) | (22 | ) | ||||||||||||||||||||||
Special Items | (149 | ) | (277 | ) | 5 | — | — | — | — | — | — | |||||||||||||||||||||||||
Reorganization Items | (10 | ) | (1,173 | ) | (611 | ) | (3,003 | ) | 10,030 | — | — | — | — | |||||||||||||||||||||||
Pre - Tax Income | (3,198 | ) | (2,804 | ) | (1,726 | ) | (3,667 | ) | 10,379 | 836 | 1,217 | 1,342 | 1,569 | |||||||||||||||||||||||
Income Tax Provision | — | — | — | 0 | 0 | (325 | ) | (468 | ) | (514 | ) | (599 | ) | |||||||||||||||||||||||
Preferred Distributions/Equity in Affiliate Income | (14 | ) | (4 | ) | 5 | 4 | — | — | — | — | — | |||||||||||||||||||||||||
Net Income | $ | (3,212 | ) | $ | (2,808 | ) | $ | (1,721 | ) | $ | (3,663 | ) | $ | 10,379 | $ | 510 | $ | 749 | $ | 827 | $ | 969 | ||||||||||||||
Mainline Operating Statistics | ||||||||||||||||||||||||||||||||||||
ASMs (millions) | 148,693 | 135,815 | 144,481 | 140,062 | 140,856 | 140,856 | 141,237 | 140,856 | 140,856 | |||||||||||||||||||||||||||
Passenger RASM (¢/ASM) | 8.19 | ¢ | 8.27 | ¢ | 8.59 | ¢ | 9.04 | ¢ | 9.32 | ¢ | 9.58 | ¢ | 9.82 | ¢ | 10.05 | ¢ | 10.26 | ¢ | ||||||||||||||||||
Operating CASM less Fuel and UAFC (¢/ASM) | 9.46 | ¢ | 8.50 | ¢ | 7.92 | ¢ | 7.52 | ¢ | 7.56 | ¢ | 7.71 | ¢ | 7.78 | ¢ | 8.04 | ¢ | 8.30 | ¢ |
1 | Historic Passenger Revenue in the Projected Income Statement has been adjusted to be consistent with (i) a change in accounting with respect to Marketing Programs Passenger Revenue, as disclosed in Item 1 of UAL’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2005 under the heading “UAL Loyalty Services, LLC,” and (ii) treat charter revenues as “Other Revenues” in the Projections. |
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Projected Balance Sheet
($ Millions)
Actual | Actual | Actual | Act/Proj | Projected | Projected | Projected | Projected | Projected | ||||||||||||||||||||||||||||
2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | ||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||
Current Assets: | ||||||||||||||||||||||||||||||||||||
Cash, cash equivalents, & ST investments | $ | 1,274 | 1,718 | 1,301 | 1,289 | 2,733 | 3,506 | 4,133 | 4,750 | 3,385 | ||||||||||||||||||||||||||
Restricted Cash | 462 | 679 | 877 | 981 | 950 | 845 | 845 | 845 | 845 | |||||||||||||||||||||||||||
Receivables, net | 1,114 | 929 | 951 | 932 | 956 | 995 | 1,017 | 1,038 | 1,059 | |||||||||||||||||||||||||||
Aircraft fuel, spare parts & supplies | 310 | 264 | 234 | 232 | 230 | 234 | 238 | 242 | 247 | |||||||||||||||||||||||||||
Prepaid and Other Assets | 219 | 434 | 551 | 523 | 588 | 587 | 585 | 581 | 579 | |||||||||||||||||||||||||||
Total Current Assets | 3,379 | 4,024 | 3,914 | 3,957 | 5,457 | 6,168 | 6,818 | 7,456 | 6,115 | |||||||||||||||||||||||||||
Operating property and equipment | 16,361 | 15,038 | 14,174 | 13,459 | 9,710 | 9,639 | 9,644 | 9,701 | 9,800 | |||||||||||||||||||||||||||
Pension assets | 1,162 | 904 | 665 | — | — | — | — | — | — | |||||||||||||||||||||||||||
Other intangibles | 412 | 406 | 399 | 374 | 3,869 | 3,450 | 3,371 | 3,292 | 3,228 | |||||||||||||||||||||||||||
Other assets | 2,342 | 1,607 | 1,553 | 1,432 | 1,156 | 1,039 | 849 | 799 | 509 | |||||||||||||||||||||||||||
Total Other Assets | 20,277 | 17,955 | 16,791 | 15,265 | 14,735 | 14,128 | 13,864 | 13,793 | 13,536 | |||||||||||||||||||||||||||
Total Assets | $ | 23,656 | $ | 21,979 | $ | 20,705 | $ | 19,222 | $ | 20,193 | $ | 20,296 | $ | 20,683 | $ | 21,249 | $ | 19,651 | ||||||||||||||||||
Liabilities & Equity | ||||||||||||||||||||||||||||||||||||
Current Liabilities Accounts payable | $ | 284 | $ | 501 | $ | 601 | 462 | 485 | 499 | 516 | 532 | 548 | ||||||||||||||||||||||||
DIP Loan Facility | — | 663 | 864 | 1,132 | — | — | — | — | — | |||||||||||||||||||||||||||
Advance ticket sales | 1,021 | 1,330 | 1,361 | 1,532 | 1,578 | 1,619 | 1,659 | 1,689 | 1,724 | |||||||||||||||||||||||||||
Accrued & Other Current Liabilities | 2,686 | 3,618 | 3,635 | 2,522 | 2,538 | 2,683 | 2,679 | 2,736 | 2,803 | |||||||||||||||||||||||||||
Total Current Liabilities | 3,991 | 6,112 | 6,461 | 5,648 | 4,601 | 4,801 | 4,853 | 4,957 | 5,075 | |||||||||||||||||||||||||||
Deferred pension liabilities | 4,661 | 4,747 | 2,333 | 165 | 115 | 126 | 135 | 144 | 152 | |||||||||||||||||||||||||||
Post retirement liabilities | 1,809 | 1,924 | 1,920 | 2,050 | 2,161 | 2,165 | 2,172 | 2,179 | 2,186 | |||||||||||||||||||||||||||
Exit Financing | — | — | — | — | 2,400 | 2,300 | 2,200 | 2,100 | — | |||||||||||||||||||||||||||
Aircraft Debt | — | — | — | — | 5,444 | 4,850 | 4,030 | 3,219 | 2,012 | |||||||||||||||||||||||||||
Other Debt | 700 | 163 | 301 | — | 1,159 | 1,196 | 1,239 | 1,284 | 1,330 | |||||||||||||||||||||||||||
Liabilities subject to compromise | 13,833 | 13,964 | 16,035 | 17,847 | — | — | — | — | — | |||||||||||||||||||||||||||
Deferred tax liabilities | 249 | 285 | 389 | 249 | 249 | 266 | 711 | 1,196 | 1,758 | |||||||||||||||||||||||||||
Other liabilities | 894 | 700 | 946 | 1,295 | 1,294 | 1,294 | 1,294 | 1,294 | 1,294 | |||||||||||||||||||||||||||
Total Liabilities | 26,137 | 27,895 | 28,385 | 27,253 | 17,423 | 16,998 | 16,635 | 16,374 | 13,807 | |||||||||||||||||||||||||||
Equity | ||||||||||||||||||||||||||||||||||||
Preferred Stock | — | — | — | — | 409 | 419 | 430 | 440 | 451 | |||||||||||||||||||||||||||
Treasury Stock | (1,472 | ) | (1,469 | ) | (1,468 | ) | (1,468 | ) | — | — | — | — | — | |||||||||||||||||||||||
Common Stock and APIC | 5,071 | 5,068 | 5,065 | 5,065 | 2,360 | 2,878 | 3,617 | 4,434 | 5,392 | |||||||||||||||||||||||||||
Retained Earnings and Other Comprehensive Losses | (6,080 | ) | (9,515 | ) | (11,277 | ) | (11,628 | ) | — | — | — | — | — | |||||||||||||||||||||||
Total Shareholders’ Equity (Deficit) | (2,481 | ) | (5,916 | ) | (7,680 | ) | (8,031 | ) | 2,769 | 3,298 | 4,047 | 4,874 | 5,843 | |||||||||||||||||||||||
Total Liabilities & Shareholders’ Equity | $ | 23,656 | $ | 21,979 | $ | 20,705 | $ | 19,222 | $ | 20,193 | $ | 20,296 | $ | 20,683 | $ | 21,249 | $ | 19,651 | ||||||||||||||||||
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Projected Fresh Start Balance Sheet
($ Millions)
New Credit | Reorganized | |||||||||||||||||||||||
Projected | Release of | Debt Discharge & | Facility Financing | Fresh Start | February 1, 2006 | |||||||||||||||||||
February 1, 2006 | Escrowed Funds | Reclassifications | Transactions | Adjustments | Balance Sheet | |||||||||||||||||||
Assets | ||||||||||||||||||||||||
Current Assets: | ||||||||||||||||||||||||
Cash, cash equivalents, & ST investments | 867 | 518 | (39 | ) | 1,318 | — | 2,664 | |||||||||||||||||
Restricted Cash | 1,143 | (318 | ) | — | — | — | 825 | |||||||||||||||||
Receivables, net | 921 | — | — | — | — | 921 | ||||||||||||||||||
Aircraft fuel, spare parts & supplies | 227 | — | — | — | — | 227 | ||||||||||||||||||
Prepaid and Other Assets | 572 | — | — | — | — | 572 | ||||||||||||||||||
Total Current Assets | 3,730 | 200 | (39 | ) | 1,318 | — | 5,209 | |||||||||||||||||
Operating property and equipment | 12,257 | — | — | — | (2,351 | ) | 9,906 | |||||||||||||||||
Pension assets | — | — | — | — | — | |||||||||||||||||||
Other intangibles | 395 | — | — | — | 3,589 | 3,983 | ||||||||||||||||||
Other assets | 1,385 | (200 | ) | — | 50 | (1 | ) | 1,234 | ||||||||||||||||
Total Other Assets | 14,037 | (200 | ) | 50 | 1,237 | 15,124 | ||||||||||||||||||
Total Assets | 17,767 | — | (39 | ) | 1,368 | 1,237 | 20,333 | |||||||||||||||||
Liabilities & Stockholders’ Equity | ||||||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||||||
Accounts Payable | 478 | — | — | — | — | 478 | ||||||||||||||||||
DIP Loan Facility | 1,132 | — | — | (1,132 | ) | — | — | |||||||||||||||||
Advance ticket sales | 1,606 | — | — | — | — | 1,606 | ||||||||||||||||||
Accrued & Other Current Liabilities | 2,409 | — | 151 | — | — | 2,560 | ||||||||||||||||||
Total Current Liabilities | 5,625 | — | 151 | (1,132 | ) | — | 4,644 | |||||||||||||||||
Deferred Pension Liability | 105 | — | — | — | — | 105 | ||||||||||||||||||
Post retirement liabilities | 2,050 | — | — | — | 50 | 2,100 | ||||||||||||||||||
Exit Financing | — | — | — | 2,500 | — | 2,500 | ||||||||||||||||||
Aircraft Debt | — | — | 6,000 | — | — | 6,000 | ||||||||||||||||||
Other Debt | — | — | 1,136 | — | — | 1,136 | ||||||||||||||||||
Liabilities subject to compromise | 16,905 | — | (16,585 | ) | — | (320 | ) | — | ||||||||||||||||
Deferred tax liabilities | 249 | — | — | — | — | 249 | ||||||||||||||||||
Other liabilities | 1,294 | — | — | — | — | 1,294 | ||||||||||||||||||
Total Liabilities | 26,228 | — | (9,298 | ) | 1,368 | (269 | ) | 18,029 | ||||||||||||||||
Stockholders’ Equity: | ||||||||||||||||||||||||
Debtors | ||||||||||||||||||||||||
Treasury Stock | (1,468 | ) | — | — | — | 1,468 | — | |||||||||||||||||
Common Stock & APIC — Debtors | 5,065 | — | — | — | (5,065 | ) | — | |||||||||||||||||
Retained deficit and other — Debtors | (12,058 | ) | — | 8,855 | — | 3,203 | — | |||||||||||||||||
Reorganized Debtors | ||||||||||||||||||||||||
Convertible Preferred Stock | — | — | 404 | — | — | 404 | ||||||||||||||||||
Common Stock & APIC — Reorganized Debtor | — | — | — | — | 1,900 | 1,900 | ||||||||||||||||||
Retained Earnings | — | — | — | — | — | — | ||||||||||||||||||
Total Liabilities & Stockholders’ Equity | $ | 17,767 | $ | — | $ | (39 | ) | $ | 1,368 | $ | 1,237 | $ | 20,333 | |||||||||||
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Projected Statement of Cash Flows
($ Millions)
Actual | Actual | Actual | Act/Proj | Projected | Projected | Projected | Projected | Projected | ||||||||||||||||||||||||||||
2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | ||||||||||||||||||||||||||||
Cash Provided By/(Used For) Operations | ||||||||||||||||||||||||||||||||||||
Net Income | ($3,212 | ) | ($2,808 | ) | ($1,721 | ) | ($3,663 | ) | $ | 10,379 | $ | 510 | $ | 749 | $ | 827 | $ | 969 | ||||||||||||||||||
Depreciation & Amortization | 970 | 938 | 874 | 842 | 741 | 744 | 724 | 772 | 816 | |||||||||||||||||||||||||||
Deferred Tax Provision | 580 | 275 | 5 | (0 | ) | (0 | ) | 313 | 445 | 485 | 562 | |||||||||||||||||||||||||
Net Working Capital | (401 | ) | 842 | 350 | 416 | (163 | ) | 205 | 62 | 119 | 131 | |||||||||||||||||||||||||
Other | 924 | 1,572 | 443 | 2,783 | (9,954 | ) | 116 | 110 | 97 | 77 | ||||||||||||||||||||||||||
Net Cash Provided By (Used In) Operating Activities | (1,139 | ) | 819 | (49 | ) | 378 | 1,003 | 1,889 | 2,091 | 2,300 | 2,555 | |||||||||||||||||||||||||
Cash Flow From Investing Activities: | ||||||||||||||||||||||||||||||||||||
Sales/(Additions to) operating property and equipment | 207 | (27 | ) | (246 | ) | (234 | ) | (400 | ) | (550 | ) | (650 | ) | (750 | ) | (850 | ) | |||||||||||||||||||
Other | (688 | ) | (12 | ) | (76 | ) | (98 | ) | 231 | 104 | (0 | ) | (0 | ) | (0 | ) | ||||||||||||||||||||
Net Cash Provided By (Used For) Investing Activities | (481 | ) | (39 | ) | (322 | ) | (333 | ) | (169 | ) | (446 | ) | (650 | ) | (750 | ) | (850 | ) | ||||||||||||||||||
Cash Flow From Financing Activities: | ||||||||||||||||||||||||||||||||||||
DIP Financing | 700 | (37 | ) | 200 | 269 | (1,132 | ) | — | — | — | — | |||||||||||||||||||||||||
Exit Facility | — | — | — | — | 2,400 | (100 | ) | (100 | ) | (100 | ) | (2,100 | ) | |||||||||||||||||||||||
Other debt | (589 | ) | (311 | ) | (251 | ) | (327 | ) | (658 | ) | (570 | ) | (714 | ) | (833 | ) | (970 | ) | ||||||||||||||||||
Dividends paid | (7 | ) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Payment of Liabilities Subject-To-Compromise | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Issuance (Redemption) Of Common Stock | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Issuance (Redemption) Of Preferred Stock | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Other | 162 | 12 | 5 | — | — | — | — | — | — | |||||||||||||||||||||||||||
Net Cash Provided By (Used For) Financing Activities | 266 | (336 | ) | (46 | ) | (58 | ) | 610 | (670 | ) | (814 | ) | (933 | ) | (3,070 | ) | ||||||||||||||||||||
Net Increase (Decrease) in Unrestricted Cash & Equivalents | ($1,354 | ) | $ | 444 | ($417 | ) | ($13 | ) | $ | 1,444 | $ | 773 | $ | 626 | $ | 617 | ($1,365 | ) | ||||||||||||||||||
Unrestricted Cash & Equivalents At Beginning Of Perod | $ | 2,628 | $ | 1,274 | $ | 1,718 | $ | 1,301 | $ | 1,289 | $ | 2,733 | $ | 3,506 | $ | 4,133 | $ | 4,750 | ||||||||||||||||||
Unrestricted Cash & Equivalents At End Of Perod | $ | 1,274 | $ | 1,718 | $ | 1,301 | $ | 1,289 | $ | 2,733 | $ | 3,506 | $ | 4,133 | $ | 4,750 | $ | 3,385 |
Table of Contents
FOR THE NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
In re: | ) | Chapter 11 | ||||
) | ||||||
UAL Corporation, et al.,1 | ) | |||||
) | Case No. 02-B-48191 | |||||
Debtors. | ) | Honorable Eugene R. Wedoff | ||||
) | (Jointly Administered) | |||||
) |
REORGANIZATION PURSUANT TO CHAPTER 11 OF THE UNITED STATES
BANKRUPTCY CODE
1 | The Debtors are the following entities: Air Wisconsin, Inc., Air Wis Services, Inc., Biz Jet Charter, Inc., Biz Jet Fractional, Inc., Biz Jet Services, Inc., Ameniti Travel Clubs, Inc., Cybergold, Inc., Domicile Management Services, Inc., Four Star Leasing, Inc., itarget.com, inc., Kion Leasing, Inc., Mileage Plus Holdings, Inc., Mileage Plus, Inc., Mileage Plus Marketing, Inc., MyPoints.com, Inc., MyPoints Offline Services, Inc., Premier Meeting and Travel Services, Inc., UAL Benefits Management, Inc., UAL Company Services, Inc., UAL Corporation, UAL Loyalty Services, LLC, United Air Lines, Inc., United Aviation Fuels Corporation, United Biz Jet Holdings, Inc., United Cogen, Inc., United GHS, Inc., United Vacations, Inc., and United Worldwide Corporation. |
Table of Contents
Document | Exhibit Number | |
SOLICITATION MATERIALS | ||
Solicitation Procedures | 1 | |
BANKRUPTCY DOCUMENTS | ||
Retained Causes of Action | 2 | |
DOCUMENTS RELATED TO EXECUTORY CONTRACTS AND UNEXPIRED LEASES | ||
Assumed Executory Contracts and Unexpired Leases | 3 | |
Rejected Executory Contracts and Unexpired Leases | 4 | |
Assumed Interline & Alliance Related Agreements, Revenue Related Contracts, and Intercompany Contracts | 5 | |
Rejected Interline & Alliance Related Agreements, Revenue Related Contracts, and Intercompany Contracts | 6 | |
Assumed Employment Agreements and Indemnification Obligations for Current Employees | 7 | |
Rejected Employment Agreements and Indemnification Obligations for Current Employees | 8 | |
Assumed Employment Agreements and Indemnification Obligations for Former Employees | 9 | |
Rejected Employment Agreements and Indemnification Obligations for Former Employees | 10 | |
Assumed Foreign Agreements | 11 | |
Rejected Foreign Agreements | 12 | |
Conditionally Rejected Municipal Bond Leases | 13 |
2 | The Exhibits to the Plan Supplement are not included in the materials distributed with the Disclosure Statement and Plan. The Plan Supplement Exhibits may be inspected: (i) in the office of the clerk of the Bankruptcy Court or its designee during normal business hours; (ii) at the Bankruptcy Court’s website at http://www.ilnb.uscourts.gov; and (iii) at the Debtors’ private website at http://www.pd-ual.com. |
Table of Contents
Document | Exhibit Number | |||||
SETTLEMENT AGREEMENTS | ||||||
PBGC Settlement Agreement | 14 | |||||
Chicago Municipal Bond Settlement Agreement and Order | 15 | |||||
AFA Restructuring Agreement (May 1, 2003) | 16 | |||||
Amended AFA Restructuring Agreement (January 7, 2005) | 17 | |||||
ALPA Restructuring Agreement (May 1, 2003) | 18 | |||||
Amended ALPA Restructuring Agreement (January 1, 2005) | 19 | |||||
AMFA Restructuring Agreement (May 15, 2005) | 20 | |||||
IAM 141 Restructuring Agreements (May 1, 2003) | 21 | |||||
Mechanics’ Agreement | A | |||||
Food Services Agreement | B | |||||
Public Contact Employees’ Agreement | C | |||||
Ramp and Stores Agreement | D | |||||
Security Officers’ Agreement | E | |||||
Maintenance Instructors Agreement | F | |||||
Fleet Technical Instructors’ and Related Agreement | G | |||||
Amended IAM 141 Restructuring Agreement (July 1, 2005) | 22 | |||||
PAFCA Restructuring Agreement (May 1, 2003) | 23 | |||||
Amended PAFCA Restructuring Agreement (January 1, 2005) | 24 | |||||
TWU Restructuring Agreement (May 1, 2003) | 25 | |||||
Amended TWU Restructuring Agreement (January 1, 2005) | 26 | |||||
FINANCIAL DOCUMENTS | ||||||
Liquidation Analyses | 27 |
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Table of Contents
Document | Exhibit Number | |||||
Notes and Assumptions to Hypothetical Liquidation Analyses | A | |||||
Consolidated Liquidation Analysis | B | |||||
NonConsolidated Liquidation Analyses | C | |||||
Air Wis Services, Inc. | i | |||||
Air Wisconsin, Inc. | ii | |||||
BizJet Charter, Inc. | iii | |||||
BizJet Fractional, Inc. | iv | |||||
BizJet Services, Inc. | v | |||||
Confetti, Inc. | vi | |||||
Cybergold, Inc. | vii | |||||
Domicile Management Services, Inc. | viii | |||||
Four Star Leasing, Inc. | ix | |||||
itarget.com, Inc. | x | |||||
Kion Leasing, Inc. | xi | |||||
Mileage Plus Holdings, Inc. | xii | |||||
Mileage Plus Marketing, Inc. | xiii | |||||
Mileage Plus, Inc. | xiv | |||||
MyPoints Offline Services, Inc. | xv | |||||
MyPoints.com, Inc. | xvi | |||||
Premier Meeting and Travel Services, Inc. | xvii | |||||
UAL Benefits Management, Inc. | xviii | |||||
UAL Company Services, Inc. | xix | |||||
UAL Corporation | xx |
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Table of Contents
Document | Exhibit Number | |||||
UAL Loyalty Services, Inc. | xxi | |||||
United Air Lines, Inc. | xxii | |||||
United Aviation Fuels Corporation | xxiii | |||||
United BizJet Holdings, Inc. | xxiv | |||||
United Cogen, Inc. | xxv | |||||
United GHS, Inc. | xxvi | |||||
United Vacations, Inc. | xxvii | |||||
United Worldwide Corporation | xxviii | |||||
Financial Projections | 28 | |||||
Valuation Analysis | 29 | |||||
CORPORATE DOCUMENTS | ||||||
Organization Charts | 30 | |||||
Summary of Selected Terms of New Equity | 31 | |||||
Management Equity Incentive Plan | 32 | |||||
Director Equity Incentive Plan | 33 | |||||
Amended and Restated Bylaws of UAL Corporation | 34 | |||||
Restated Certificate of UAL Corporation | 35 | |||||
AIRCRAFT RELATED MATERIALS | ||||||
Aircraft Financing Summary | 36 |
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