Home 
Health Care Matters 1114
Process
Section 1114 Process
See also:
Summary of 1114 Process
Changes to Retiree Medical Benefits are not necessary for United's successful reorganization. Management is simply pursuing this because the bankruptcy law provides them with the ability to do so.
Bankruptcy law requires that both parties negotiate in an effort to reach a consensual agreement, and this process will begin sometime next week when United is expected to provide each of the representatives of retiree groups with a “term sheet” of proposed changes.
Management has not yet filed under Section 1114, but we expect them to do so by mid-February. Our collective efforts between now and then will be to encourage United senior management NOT to file under Section 1114 of the bankruptcy code.
Once United files under Section 1114 of the bankruptcy code, a hearing date will be scheduled in the bankruptcy court 14 days later. The bankruptcy judge, Judge Eugene Wedoff, will render his decision about modifications presented in the term sheet, within 90 days following the hearing date. Absent a decision by United management to halt the Section 1114 filing or the parties reaching a consensual agreement, discussions would likely continue up to the date Judge Wedoff makes a ruling.