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UAL Seeks Court Approval To Amend Loan  
User currently offlineAvek00 From United States of America, joined Oct 2004, 4524 posts, RR: 22
Posted (10 years 11 months 1 week 1 day 2 hours ago) and read 2200 times:

UAL Seeks Court Approval to Amend Loan

Monday June 27, 4:47 pm ET

Parent Company of United Airlines Seeks Court Approval to Raise Loan Commitment to $1.3 Billion

WASHINGTON (AP) -- UAL Corp., parent of United Airlines, Monday said it wants to increase its debtor-in-possession loan commitment by an additional $310 million to $1.3 billion.
The Tranche A loan would be sized at $200 million, and the Tranche B loan at $1.1 billion, the Elk Grove Village, Ill.-based company said.

Under the proposed amendments, UAL is required to maintain at least $750 million in cash or its equivalents.

According to the regulatory filing with the Securities and Exchange Commission, UAL also wants to extend the maturity date of the loan to Dec. 30, with the option of a further extension to March 31, 2006, if it meets certain conditions.

UAL filed for bankruptcy protection in December 2002, listing assets of $22.73 billion and debts of $21.48 billion.

The U.S. Bankruptcy Court in Chicago in December 2002 authorized UAL to strike a $1 billion financing agreement with a syndicate of banks.


By seeking an increase in the size of its bankruptcy loan, as well as an extension on the financing timeframe, UAL is more or less admitting that it is up a creek without a paddle. Combined with $60+/barrel oil prices, IMHO, the odds of United emerging from bankruptcy this year are between Slim and None, and Slim just left town on Ted...

Live life to the fullest.
1 replies: All unread, jump to last
User currently offlineFlightopsguy From United States of America, joined Jan 2005, 348 posts, RR: 0
Reply 1, posted (10 years 11 months 1 week 1 day 1 hour ago) and read 2140 times:

What do you figure the statement in this filing about "purchase of certain aircraft" was all about? The previously announced purchase of those 4 767's?

A300-330 BAC111/146/J31/41 B99/1900 CV580 B707-777 DC8/9/10 L188/1011 FH227/28/100 SB340 DO228 EMB2/170 CR2-900 SH330-60
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