Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
UAL Offered Debt Financing  
User currently offlineScotron11 From United Kingdom, joined Feb 2004, 1276 posts, RR: 3
Posted (11 years 3 months 1 week 6 days 19 hours ago) and read 1672 times:
Support Airliners.net - become a First Class Member!

FT reports that UAL has received four offers of up to $2.5Billion in debt-financing which would enable them to emerge from bankruptcy.

FT has identified them as Citigroup, JPMorgan, Deutsche Bank and GE, through its aircraft leasing subsidiary.(UAL refused to confirm these companies).

Jake Brace, UAL's finance director, said the funding is contingent on UAL terminating its defined benefit pension plans and reducing annual costs by a further $2.5Bn, including $725M in new labor cuts.

UAL has set a deadline of May to secure agreement on their pension plans. Brace said once these issues are resolved, the airline would present a plan of reorganization which takes approx 3-4 months, pointing to a 4th quarter exit, possibly.

Good news, I guess, although he qualified that there was no guarantee they will come out of Chap 11 definitely. Hope it comes to fruition.

3 replies: All unread, jump to last
User currently offlineStevenUhl777 From , joined Dec 1969, posts, RR:
Reply 1, posted (11 years 3 months 1 week 6 days 19 hours ago) and read 1638 times:

Interesting...for my Dad's sake, I hope they can stall the pension issue until after July 12th of this year, as there's a "look-back" period in effect based on the contract he retired under.

Still...it's a promising development. However, we're not quite at the $725mm in labor savings yet, and I'd be curious to see where the rest would come from. If I'm not mistaken, these banks also are the participating banks in the DIP financing package that UAL currently benefits from.

If all this comes to fruition somehow, expect that the new board of directors at UAL will include most, if not all, representatives of these banks. Reading between the lines, these big banks have enough confidence in UAL to allegedly make these committments, assuming cutbacks are made. To me, UAL needs to further cut back on domestic, and expand international, much more than the 12/14% split they have announced.

User currently offlineMoMan From United States of America, joined Aug 2004, 1054 posts, RR: 4
Reply 2, posted (11 years 3 months 1 week 6 days 18 hours ago) and read 1623 times:

This is an interesting development. I haven't heard too much in the media about dropping the pensions lately; I speculate they are laying low and hoping that the outcry will be over in a month or two and then mgmt will get approval and do it "under the radar". I read somewhere that the Pension benefit guaranty board (sp) was going to fight accepting any of United's pensions.

I wonder what will happen if they cannot get approval to drop their pensions.


AA Platinum Member - American Airlines Forever
User currently offlineSNATH From United States of America, joined Mar 2004, 3254 posts, RR: 21
Reply 3, posted (11 years 3 months 1 week 6 days 16 hours ago) and read 1545 times:


Thanks for posting. Very interesting. Best of luck to UA and it employees.

Deutsche Bank

That's who recently funded AC, wasn't it?


Nikon: we don't want more pixels, we want better pixels.
Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
UAL Close To New Financing Package posted Tue Jul 20 2004 11:11:21 by Leelaw
Kingfisher Air Q1 Net Loss: US$50M, Debt: US$1.25B posted Wed Jul 29 2009 05:26:41 by SInGAPORE_AIR
UAL Suspends IAD-PEK And Other Intl Fall Changes posted Tue Jul 21 2009 12:33:56 by LAXintl
UAL Posts Net Profits posted Tue Jul 21 2009 06:59:15 by Olympic472
UAL PS Service With Internet Access Status posted Thu Jul 16 2009 17:08:39 by Stevev1000
Ual Mainline Ground Stop To Ord posted Thu Jul 2 2009 04:32:32 by Ualops
UAL 777 At RDU Today posted Sun Jun 21 2009 12:31:25 by KSYR
AC Seeks $600 Million In Financing posted Mon Jun 15 2009 15:36:47 by N62NA
Effect Of Possible UAL-Continental Merger On IAD posted Fri Jun 12 2009 15:48:29 by RJpieces
UAL Credit Rating Cut 2 Points posted Wed Jun 10 2009 11:23:58 by Spin25