United Shares In Holding Pattern

December 17, 2002 (PLANSPONSOR.com) - A bankruptcy judge has ordered State Street Bank and Trust Co, the trustee for United Airlines' employee stock ownership plan (ESOP), not to sell any more of the airline's shares.

State Street has maintained it should have a right to sell the shares, because bankruptcy often leaves common and preferred shares worthless, according to a Reuters report..

The court however said it needs time to consider the impact on the airline that the selling shares would have and will consider the issue at a December 30 hearing that had been previously scheduled.

United had  previously filed a motion  to prevent the selling of employee-owned shares, representing approximately 55% of the company, to prevent a possible shift in company ownership and an adverse effect on the airline’s tax liability.