Boeing Responds to United Bankruptcy

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Boeing Responds to United Bankruptcy

Chicago, December 9, 2002 =96 Boeing Capital will work closely with =
United=20
Airlines and its bankruptcy trustee to determine what will happen in the=20=

aftermath of the airline filing for Chapter 11 bankruptcy protection,=20
said President Jim Palmer.

=93We are obviously concerned by United=92s decision to file for =
bankruptcy,=20
but have been well aware of the possibility,=94 he said.

Boeing Capital has approximately $1.3 billion in financings to United in=20=

its $11.5 billion portfolio. Palmer said that the total amount is=20
secured by collateral, primarily 777-200ERs that have delivered in the=20=

past three years.

Outcomes under bankruptcy reorganization can vary widely, Palmer said.=20=

Under U.S. bankruptcy laws, the airline has 60 days to notify Boeing=20
Capital whether it intends to continue performing under the terms of=20
existing agreements, or Boeing Capital may recover the airplanes.=20
Alternately, the airline may request that the terms of the existing=20
agreements be renegotiated and restructured.

=93Any decisions that are made and actions that are taken will consider=20=

the best interests of all Boeing stakeholders,=94 said Palmer.

--
David Mueller / HNL
dmueller7@lycos.com
http://www.quanterium.com

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