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CA Lawyer
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Category: Bankruptcy Law
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Experience:  Bankruptcy Attorney
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I filed a claim against my former employer of 36 years in the

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I filed a claim against my former employer of 36 years in the bankruptcy court in Chicago. Their law firm, Kirkland & Ellis contacted me regarding a settlement of my claim. They e-mailed a document detailing the agreement, just needing my signature. While I was pondering the agreement, I learned from Portman & Douglass from documents sent via e-mail that United Airlines had withdrawn their objection to my claim and pay it in full ($243,880). I kept waiting for the updated document which never came. In October, I received United stock in the mail. I had no idea what that was all about, but since it said on the papers that the amount wwas being reported to the IRS, I sold the stock and deposited the money ($6,000+) in the bank. I never received any notification that this was my settlement. Only a complete idiot would turn down a far larger amount so I want to know if I have any recourse?
Do you have a copy of their Chapter 11 plan?

Was the Chapter 11 plan confirmed?

Does it say that they will pay your claim in full?

The Chapter 11 plan should set forth your treatment, what does it say?
Customer: replied 7 years ago.
I have so many papers, and as you can imagine, there are volumes of it with such a large company as United Airlines. Yes, their Chapter 11 plan was confirmed.
Yes, it does say they will pay my claim in full.
I was one of many creditors listed in the papers. I know this is a very complicated matter.
Did the bankruptcy court adjudicate and/or reduce your claim from what was stated in the proof of claim? This would involve receiving an objection to your claim, and then the bankruptcy Court issuing an order setting the approved amount of the claim.

Customer: replied 7 years ago.
I have not been told anything about my claim being reduced. They did object to it originally, but I have a copy of the order where they agreed to withdraw their objection to the claim and pay claim in full. Should I contact the BK judge (Judge Wedoff) and ask for how they arrived at giving me UA stock (in a far less amount!)?
Well... First I would look carefully at the Chapter 11 plan. Many times they provide for several distributions over a period of a few years to pay you. Perhaps this was just one distribution out of many with more to come later.

If they are in violation of the terms of the plan there are basically two options. The first is to hire an attorney and sue them in State Court for what you are owed under the plan. The second (more common) would be to file a motion in the bankruptcy court for the appointment of a trustee and/or to force a conversion to Chapter 7 for failing to follow the plan (conversion to 7 could be bad though as it would result in a liquidation of their assets).

Customer: replied 7 years ago.

Sorry to be a while replying but I had company and they just left. I assume you mean the venue would be the state court in Illinois? I live in Florida.
It would be either the State where United is incorporated or where there principal business is, or where you worked for them.

The confirmed Chapter 11 plan is binding and you can sue in state court to enforce its terms.

However, its more common to try to enforce it in the bankruptcy Court by getting a trustee appointed (instead of having the Corp as a debtor in possession) or trying to get the case converted to 7, but the conversion could be problematic as it would result in a liquidation and your unsecured non-priority claim would be paid last with other unsecured nonpriority claims.

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