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Administration May 12, 2003
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.
Reported by Eric Hazard
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.