A rumor that United Airlines has declared bankruptcy has been refuted by the airline's parent company. A 2002 report published on the South Florida Sun-Sentinel sent investors into a panic.
Shares of the company were down by 76% before trading was halted. 90 minutes later, trading was resumed and the stock managed to make up for lost ground.
"United has demanded a retraction from the Sun-Sentinel and is launching an investigation," said a statement by United Airlines (NYSE:UAL).
UAL had filed for bankruptcy on Dec. 9, 2002, and left court supervision on Feb. 1, 2006. The news was reprinted and caused the sharp stock market reaction.
"We have been informed that a 2002 Chicago Tribune news report about United Airlines' financial condition was picked up and circulated on the Internet Monday morning," said a statement by Chicago-based Tribune. "The story is not current. We are looking into the situation."
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