The Bankruptcy Option: Does the United Airlines Model Work for General Motors?
Washburn University. School of Business
Kaw Valley Bank
This case analyzes the actions taken (or potentially taken) by two financially distressed American corporate icons. The first company, United Airlines (UAL), awash in debt, filed for bankruptcy in 2002. . . . General Motors (GM), the second company, also faced the possibility of bankruptcy in 2008. . . . This case looks at financial and operating restructuring opportunities available to a company through bankruptcy. First, the case looks at interest savings achieved by UAL after emerging from bankruptcy. The case posits the question, are these savings (attributed to UAL's lower levels of debt), available to GM if it filed for bankruptcy protection?