United Airlines gets 3 billion dollar loan for bankruptcy exit

0 Comments | AFP, October, 2005

CHICAGO (AFP) — The parent of United Airlines said it has secured a three billion dollar loan package that clears a hurdle to its plans to emerge from bankruptcy protection by February.

The financing will be used to repay debts incurred during United's three years in bankruptcy protection and to ensure strong cash balances to conduct post-reorganization operations, UAL Corporation said.

"United is a far different company coming out of bankruptcy than it was going in," Jake Brace, United executive vice president and chief financial officer, said in a statement.

"Our demonstrated ability to restructure resulted in four major banks competing vigorously to provide exit financing, and today's agreement reflects the market's confidence in United."

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