UAL Corp.is close to renegotiating the terms of its interim financing package

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NEW YORK, July 20 (Reuters) - UAL Corp. , the parent of United Airlines, is
close to
renegotiating the terms of its interim financing package to double the amount of
cash available
and extend the maturity to next summer, The Wall Street Journal reported on
Tuesday.

UAL also is trying to enlist a new lender, General Electric Co.'s  GE Commercial
Finance,
to join in the proposed $1 billion debtor-in-possession financing, the newspaper
said, citing
unspecified people with knowledge of the situation.

UAL's existing lenders, J.P. Morgan Chase & Co. <JPM.N>, Citigroup Inc.  and CIT
Group Inc.
, are also in negotiations to participate, the Journal said.

The idea would be to syndicate the expanded loan to the same 30 financial
institutions that
participated in the earlier financing, and possibly more, according to the
newspaper.

Last month, the U.S. government rejected United Airlines' third and final bid
for a loan
guarantee, forcing the carrier to move forward with its efforts to secure
financing on its
own to exit bankruptcy.

The new $1 billion facility, which could be finalized as early as Thursday,
would not come due
until June 30, 2005, the Journal said, citing people familiar with the
negotiations. The current,
smaller financing package matures at the end of 2004.

A UAL representative was not immediately available to comment on the report, nor
were
representatives of GE, J.P. Morgan Chase, Citigroup or CIT.

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