The article below from NYTimes.com has been sent to you by psa188@xxxxxxxxx /--------- E-mail Sponsored by Fox Searchlight ------------\ THE CLEARING - IN THEATERS JULY 2 - WATCH THE TRAILER NOW An official selection of the 2004 Sundance Film Festival, THE CLEARING stars ROBERT REDFORD and HELEN MIRREN as Wayne and Eileen Hayes - a husband and wife living the American Dream. Together they've raised two children and struggled to build a successful business from the ground up. But there have been sacrifices along the way. When Wayne is kidnapped by an ordinary man, Arnold Mack (WILLEM DAFOE), and held for ransom in a remote forest, the couple's world is turned inside out. Watch the trailer at: http://www.foxsearchlight.com/theclearing/index_nyt.html \----------------------------------------------------------/ United Loses Bid for Loan Guarantee June 28, 2004 By MICHELINE MAYNARD United Airlines lost its third attempt to win federal assistance today when a loan board unanimously rejected the bankrupt airline's request for $1.1 billion in guarantees. The 3-0 vote by the Air Transportation Stabilization Board puts an end to nearly two years of efforts by United, the nation's second-largest airline, to secure loan guarantees. The board is made up of representatives from the Treasury and Transportation Departments, and the Federal Reserve. "All the members of the board join in the decision to deny United's request for reconsideration," the board's executive director, Michael Kestenbaum, said in a letter to the airline. Without federal assistance, United is now under pressure to come up with at least $2 billion in financing, and most likely more, so that it can emerge from bankruptcy protection. In a statement, United said it was "already moving forward to secure the exit financing we need to take United out of bankruptcy. The message from the A.T.S.B. is that we can get the exit financing we need on our own." The airline said its lenders "continue to be tremendously supportive of us." United said it expected that a significant portion of its exit financing would be debt-based, with or without A.T.S.B. support.` United's statement added, "That will continue to be the case, and we are now holding discussions with our lenders and others to determine what an appropriate overall capital structure might be. The discussions we are having will enable us to fill that out, so we can continue moving forward toward our exit from Chapter 11." The latest vote came 11 days after the board rejected United's previous request, for $1.6 billion in loan guarantees, on a 2-0 vote. That vote was immediately enveloped in political controversy, when Treasury Secretary John Snow, joined by the Transportation Department, intervened to offer United more time to amend its application. In that vote, the Federal Reserve's representative, Edward Gramlich, and the Treasury's representative Brian C. Roseboro, voted no. The Transportation Department's representative, Jeffrey N. Shane, abstained, saying United should be allow to present new information. Last week, United cut its request for federal assistance to $1.1 billion. It said it would seek additional private financing, cut costs, and asked to reduce the number of years it was seeking to repay the loan. Even at that reduced amount, United's application would have been the largest granted by the board, which was formed in September 2001 to oversee $10 billion in loan guarantees authorized by Congress. Regardless, the board voted to stand behind its decision on June 17 rejecting United's second application. This time, Mr. Shane, who previously had been considered a possible "yes" vote, joined the other two members in voting no. In the letter to United, the board said that it would not consider further applications from the airline. United filed for bankruptcy protection in December 2002, after the board rejected its original application for $1.8 billion in loan guarantees. The airline had based its emergence from bankruptcy on a combination of federally backed loans plus private assistance. Based on its original request for $1.6 billion in loan guarantees, United had lined up $2 billion in exit financing from JP Morgan and Citibank, including $400 million in financing provided by the banks. But the loan board, in rejecting the airline's second application, said that United had failed to qualify on two counts unrelated to financing. The board said United failed to prove that it was a "necessary part" of the nation's aviation system. Further, the board said the airline was not shut out of capital markets. It said it was convinced United could survive without federal help. Executives at United, including its chief executive officer, Glenn F. Tilton, and its chief financial officer, Frederic F. Brace III, had insisted before the second vote that United could emerge from bankruptcy with or without federal assistance. Now, the airline will have to prove that contention. Industry analysts said that minus federal assistance, United's climb out of bankruptcy will take much longer. United had estimated it would emerge from bankruptcy sometime this fall, and it had obtained financing to see it through until year's end. But Robert W. Mann Jr., an industry consultant based in Port Washington, N.Y., said it most likely will take until the end of the year for United to find investors, implement significant cost reductions, and address outstanding issues in its bankruptcy case. Mr. Mann predicted it would be spring 2005, at the soonest, before the airline leaves bankruptcy protection. http://www.nytimes.com/2004/06/28/business/28CND-UNITED.html?ex=1089441512&ei=1&en=2cc73a7d2eb4d68c --------------------------------- Get Home Delivery of The New York Times Newspaper. Imagine reading The New York Times any time & anywhere you like! Leisurely catch up on events & expand your horizons. Enjoy now for 50% off Home Delivery! Click here: http://homedelivery.nytimes.com/HDS/SubscriptionT1.do?mode=SubscriptionT1&ExternalMediaCode=W24AF HOW TO ADVERTISE --------------------------------- For information on advertising in e-mail newsletters or other creative advertising opportunities with The New York Times on the Web, please contact onlinesales@xxxxxxxxxxx or visit our online media kit at http://www.nytimes.com/adinfo For general information about NYTimes.com, write to help@xxxxxxxxxxxx Copyright 2004 The New York Times Company