CHICAGO (AP) – A federal bankruptcy court judge has blocked a group of creditors from repossessing up to 14 airplanes from United Airlines, saving the bankrupt carrier tens of millions of dollars.
Judge Eugene Wedoff issued a temporary restraining order Friday barring the group, represented by the Chicago-based law firm Chapman and Cutler LLP, from seizing up to eight Boeing 767s and six 737s.
The group of financiers, which controls about one-third of United’s fleet, had threatened to seize the planes as early as Dec. 1 because of an impasse over their leases.
United, the nation’s No. 2 airline, is seeking to lower aircraft operating costs by renegotiating its leases with creditors. However, it argued that the Chapman group was violating antitrust laws by renegotiating as a bloc instead of as individual leaseholders, forcing United to accept higher lease rates.
“We believe the court rightly prevented this attempt to pressure United into accepting above-market rates for our aircraft leases,” said Jean Medina, spokeswoman for the airline.
A message left Saturday for attorneys representing members of the Chapman group was not immediately returned.
The Chapman group is the only group of creditors that has threatened to seize aircraft, Medina said.
United, which has cut $5 billion from annual expenditures since filing for Chapter 11 bankruptcy in December 2002, has said it needs $2 billion more to emerge from bankruptcy.
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