The U.S. Bankruptcy Court in Chicago denied Independent Fiduciary Services' motion seeking approval to participate fully in proceedings related to United Airlines' potential termination of collective bargaining pacts, according to a court order. Jean Medina, United spokeswoman, said Chief Judge Eugene R. Wedoff on Thursday denied the motion, saying the independent fiduciary is not a party to the matter, unlike the PBGC and the airline's unions.
According to court papers filed in November, the airline wants to reject its collective bargaining agreements and terminate its defined benefit plans. The plans' assets totaled $6.9 billion as of Dec. 31, 2003, according to the company's annual report.
United objected to the motion, arguing that the IFS request "impermissibly exceeds the scope" of the fiduciary's authority.
