Denver wants $10 million in back rent from United

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Denver wants $10 million in back rent from United

DENVER (AP) =97 Lawyers for Denver International Airport say United Airlines=
=20
owes it for $10 million in rent in the days following the airline's=20
bankruptcy filing. Denver lawyers are asking for immediate payment of the=20
debt, even though the airline claims the rent is not due unless its lease=20
at the airport is renewed. The unpaid rent is from a 23-day period that=20
began Dec. 9, when United filed for bankruptcy protection. United argues=20
that since rent for the entire month of December was due before the company=
=20
filed Chapter 11, it should be considered prepetition debt. Under=20
bankruptcy code, prepetition debt is not due unless the airline renews its=
=20
lease at Denver. United has until Aug. 6 to renegotiate its rental=20
agreement with the airport. In a bankruptcy court filing released=20
Wednesday, Denver attorneys asked a judge to require United to pay the debt=
=20
immeDenvertely because the airport provided services to the carrier that=20
helped keep the airline flying. In Chapter 11 bankruptcy cases, prepetition=
=20
debt holders typically recover only a fraction =97 if any =97 of what they=
 are=20
owed. Denver chief financial officer Stan Koniz said the airport considers=
=20
the last three weeks of December a postpetition period. "Since they=20
declared bankruptcy on Dec. 9, they owe us rent from Dec. 9 through the end=
=20
of December," he said. United is Denver's dominant carrier, flying more=20
than 60% of the airport's passengers.


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