UAL Defers Payments to Pension Funds
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United Airlines is deferring a required quarterly payment of $72.4 million to its employee pension funds, underscoring the pensions’ vulnerability as the cash-strapped carrier seeks financing to exit from bankruptcy protection.
The UAL Corp. unit said in a four-sentence filing with the Securities and Exchange Commission that deferring a decision on the contribution enabled it to “best manage its resources and preserve its options going forward” as it works to secure the financing needed for it to emerge from Chapter 11.
A spokeswoman called deferral a “prudent, responsible step” and said it didn’t mean a decision had been made to stop pension contributions.
United emphasized that there was no effect on monthly pension payouts to retirees.
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