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.