NYTimes.com Article: UAL Says It Has Secured New Financing

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UAL Says It Has Secured New Financing

December 17, 2003





By Reuters

The UAL Corporation, the parent of United Airlines, said
yesterday that it had obtained $2 billion in financing,
which it called a major step toward emerging from
bankruptcy protection.

UAL said the loan package was obtained from J. P. Morgan
Chase & Company and Citigroup. The two banks will each
underwrite $200 million of the nonguaranteed portion of the
loan and $800 million of the guaranteed portion.

The airline, which filed for bankruptcy protection about a
year ago, said the package required a guarantee from the
federal Air Transportation Stabilization Board.

The company said it planned to update its previous proposal
to the agency soon. The air board, created after the Sept.
11 terrorist attacks, rejected United's initial request
last year for backing of most of a $2 billion loan.

United sought protection from its creditors after the
board's decision. Since then, the airline has sharply
reduced operating costs by renegotiating union contracts,
aircraft leases and deals with suppliers, among other
actions.

http://www.nytimes.com/2003/12/17/business/17ual.html?ex=1072670774&ei=1&en=8e2f08a8ec113f79


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