Status of United Airlines’ (MyPoints’ Parent Company’s) Bankruptcy

December 6, 2005 · 0 comments

Update, 4/06: MyPoints has been sold; read more here.
If you’re a member of as I’ve been, for quite a few years now, you’re as antsy as I am to find out what’s going on with the bankruptcy proceedings of MP’s parent company, United Airlines. In September, the Chicago Tribune reported that United announced to the bankruptcy judge that it was planning to sell MyPoints as part of its plan to emerge from bankruptcy this coming February. (See my posts about that here and here.)
With the Christmas season upon us and folks being tempted by the double-points offers coming up in MyPoints’ Instant Win game, and no new news on the horizon, you may be wondering if this mess has somehow blown over and our beloved MyPoints has been somehow saved.
This is the latest update I can find: United mailed out 90,000 “voting packets” to its creditors in late Nov.-early Dec. More than half who vote must approve their reorganization plan. It was said, though, that a) the judge can override a less-than-half vote if he feels the plan is fair, and b) United wouldn’t have put the plan up for a vote if they didn’t already have the approval of their largest creditors.
Creditors have until 12/19 to vote. On January 18, United will go back to court for more hearings. If all goes according to plan, the vote will be over 50%, the judge will bless it, and they’ll officially be out of bankruptcy by early February. There’s a chance that there will be objections filed that will push it back some.
So, that’s the latest. I can’t bring myself to do any shopping through them because their future is so iffy. Will they still be around when my shopping points finally credit? And how many points will it take to cash out then? (shrug) Just so you know, this situation hasn’t magically resolved itself — MyPoints IS still in limbo, and my suggestion remains that you do your shopping through rewards programs that are a little more stable.

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