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Disney writes off $114 mln on United plane leases
Reuters, 12.23.02, 4:54 PM ET
LOS ANGELES, Dec 23 (Reuters) - The Walt Disney Co. said on Monday it would take an $83 million charge and write off its investment in airplanes leased to UAL Corp.'s (nyse: UAL - news - people) United Airlines since the carrier had declared bankruptcy.
Entertainment conglomerate Disney said in a statement it would write off a $114 million investment and take an after-tax charge of $83 million, or 4 cents per share, in its fiscal first quarter ending Dec. 31. UAL filed for bankruptcy protection on Dec. 9.
"Based on United's recent bankruptcy filing, the company believes it is unlikely that it will recover this investment," Disney said.
Disney retains investments of about $175 million in planes leased by Delta Air Lines Inc. (nyse: DAL - news - people) and FedEx Corp. (nyse: DAL - news - people).
Earlier on Monday, postage meter maker Pitney Bowes (nyse: PBI - news - people) announced a charge of $100 million related to leases with United and US Airways Group Inc.<UAWGQ.OB>. On Saturday, US Airways Group filed its reorganization plan. The company had filed for bankruptcy protection in August.
Copyright 2002, Reuters News Service
Reuters, 12.23.02, 4:54 PM ET
LOS ANGELES, Dec 23 (Reuters) - The Walt Disney Co. said on Monday it would take an $83 million charge and write off its investment in airplanes leased to UAL Corp.'s (nyse: UAL - news - people) United Airlines since the carrier had declared bankruptcy.
Entertainment conglomerate Disney said in a statement it would write off a $114 million investment and take an after-tax charge of $83 million, or 4 cents per share, in its fiscal first quarter ending Dec. 31. UAL filed for bankruptcy protection on Dec. 9.
"Based on United's recent bankruptcy filing, the company believes it is unlikely that it will recover this investment," Disney said.
Disney retains investments of about $175 million in planes leased by Delta Air Lines Inc. (nyse: DAL - news - people) and FedEx Corp. (nyse: DAL - news - people).
Earlier on Monday, postage meter maker Pitney Bowes (nyse: PBI - news - people) announced a charge of $100 million related to leases with United and US Airways Group Inc.<UAWGQ.OB>. On Saturday, US Airways Group filed its reorganization plan. The company had filed for bankruptcy protection in August.
Copyright 2002, Reuters News Service
