UAL seeks extension of bankruptcy loan = = = = Thursday May 13, 4:50 PM EDT = CHICAGO, May 13 (Reuters) - UAL Corp. (UALAQ), parent of United Airlines,= has asked a bankruptcy court judge to extend $1 billion in special bankr= uptcy financing until the end of the year from mid-year, according to cou= rt documents. The No. 2 U.S. airline, which has been operating in Chapter 11 since Dece= mber 2002, had initially envisioned an 18-month reorganization. The amend= ment would extend the financing to Dec. 31 from June 30. A United spokeswoman said the amendment did not indicate a change in the = company's planned summer exit date. "This extension ensures that we have funding in place through the confirm= ation of our plan of reorganization," spokeswoman Jean Medina said. Separately, UAL is awaiting word from the federal Air Transportation Stab= ilization Board on its request for a $1.6 billion government guarantee on= a $2 billion private-sector loan that is critical to its emergence from = bankruptcy. = In court documents, the airline said it had negotiated the changes to its= debtor-in-possession financing package with its lenders. UAL has a $1 billion DIP loan from four big banks -- J.P. Morgan Chase (J= PM), Citicorp (C), Bank One (ONE) and CIT Group (CIT) -- and a separate $= 300 million loan from Bank One. The amendment would affect the $1 billion= portion of the loan. Medina also said the changes minimize the potential need for future amend= ments, which could be costly. UAL will pay the banks $1.25 million to cha= nge the terms of the deal. The carrier will also receive an immediate reduction in the interest rate= it pays and the potential for lower rates in the future. = =A92004 Reuters Limited. = Roger EWROPS