$3B comes to United's rescue

0 Comments | USA TODAY, October, 2005 | by Marilyn Adams

United Airlines said Thursday that it's landed $3 billion in loans to step out of bankruptcy protection, and it reaffirmed its plan to exit in a few months.

The loan agreement with JPMorgan Chase and Citigroup is a landmark in United's tumultuous, nearly 3-year-old reorganization and brings the giant airline significantly closer to operating outside protection from bankruptcy laws.

United CFO Jake Brace said in an interview that high jet fuel prices would not derail the No.2 carrier's plan to exit by Feb. 1.

Brace defended the assumptions underlying United's reorganization plan, which it filed with a Chicago bankruptcy court before Hurricanes Katrina and Rita impaired Gulf Coast oil production, causing prices to skyrocket.

United's plan foresees...