In a swift and abrupt turnaround, United Airlines has scrapped a plan that would have turned over ownership of 15 percent of the newly issued stock to managers. This plan caused a huge upheaval of ill will to management by the line employees and would have been a bad precedent for future airlines coming out of bankruptcy.

United Airlines has agreed to scale back a management stock-ownership plan and make other changes to its bankruptcy reorganization plan.

The moves have won the support of the committee representing unsecured creditors, who Thursday withdrew their opposition to the strategy.

The carrier originally proposed to give about 400 top executives and managers 15 percent of United’s new stock when it emerges from Chapter 11, then scaled that back to 11 percent before finally agreeing to 8 percent.

The management compensation proposal was among the issues that threatened to delay United’s exit from bankruptcy protection.

The committee unanimously backed the revised plan, said Fruman Jacobson, the unsecured creditors’ attorney.

Chicago Tribune | United reduces stock payments to management.