United Air says seeks $2 bln dip loan

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United Air says seeks $2 bln dip loan  =

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Thursday November 14, 3:09 PM EST =


CHICAGO, Nov 14 (Reuters) - UAL Corp. (UAL), parent of United Airlines, i=
s seeking "debtor-in-possession" financing in the amount of $2 billion sh=
ould a bankruptcy filing be necessary, said Chief Financial Officer Jake =
Brace on Thursday.

"We'll confirm we're talking about a $2 billion in DIP," Brace said in an=
 interview, confirming an amount earlier reported by Reuters.

"That's how much we think we need when we forecast our cash draw over the=
 next two years," he said. Brace declined to comment on which banks were =
part of the discussions.

Such an amount would be one of the largest ever such loans secured by a c=
ompany in Chapter 11. Kmart Corp. (KM) also had a $2.0 billion DIP loan.

United owes a large payment, on Dec. 2, for aircraft-backed securities an=
d is asking the federal government to back $1.8 billion of a separate $2.=
0 billion loan. The Air Transportation Stabilization Board recently asked=
 the airline for more information to support its updated business plan. =



=A92002 Reuters Limited. =


Roger
EWROPS

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