Comments by U.S. Bankruptcy Judge Eugene Wedoff from court transcription on January 20, 2006, as he approved United Airlines’ plan to emerge from bankruptcy:
Perhaps I can fill in some of that time while we are waiting. It seems to me that we have come to the end of a long process at this point. And if there is not a feeling of exultation in the room, perhaps at least there could be a feeling of relief. Certainly not everyone can be completely happy about the end that we have come to today. The holders of UAL stock as of today will see that stock canceled. Employees of the company have seen jobs lost, wage benefits substantially reduced.
On the other hand, I think there is reason to feel good about the confirmation of this plan. Three years ago United Airlines was, bluntly, in danger of dying, with all of its assets liquidated and all of its jobs lost. The company made the decision to enter into the Chapter 11 process as offering the best opportunity for avoiding that result. And it used the Chapter 11 process as a framework for restructuring its obligations, both to its creditors and to its employees, so that once again it has the potential to be a profitable investment, a reliable business partner and a stable employer.
I want to emphasize that the bankruptcy system merely provided the framework for this result. The outcome here is not a direct product of that system, so much as it is the product of the hard work, creative thinking, willingness to compromise and willingness to accept a less than ideal result that all of the parties in this process have displayed. Throughout the Chapter 11 process here, I have been much gratified, both by the excellent presentation of the issues that
required resolution by this court, but even more by the work that went into arriving at resolutions of difficult issues without the court’s involvement. In that connection, the work of the creditors committee, the debtors’ major secured creditors, the debtors’ unions, all need to be recognized. But I want particularly at this point to mention the work of the United States Trustee’s office headed by Ira Bodenstein. That office has truly participated in this process in the most constructive way. To mention just one example, participation in, its assistance in creating and its work in supporting the fee review committee has been essential in allowing the energy of the professionals and of the court to be devoted most constructively here.
There is an appropriateness in the fact that today is Mr. Bodenstein’s last day on the job as United States Trustee. And this can certainly be seen as a culmination of the efforts, an example of the efforts, in the way in which he has operated his office. In the end, as I thought about
the conclusion of the confirmation process here, what came to mind was a ceremony at the commencement of another proceeding that I have often been privileged to preside over. Marriages in Illinois, as elsewhere, may be witnessed by any judge. And I have often been asked by couples
to preside over their weddings. At first this seemed strange to me that people would want to start married life before a bankruptcy judge, but today I see wisdom in their choice.
Life does not always give us the outcomes we expect in our dealings with one another.
And when disappointments and failures occur, as they inevitably do, bankruptcy, with its emphasis on a cooperative effort to find the best solution to the resulting problems, is an entirely appropriate way to set out on a new beginning.
So my thanks to everyone here for your work, your patience and your goodwill. My best wishes for your future prosperity.
