United Airlines has struck a crucial deal with one of its banks as it attempts to avoid filing for Chapter 11 bankruptcy protection.
The airline has $500 million of debts with German bank Kreditanstalt fur Wiederaufbau, which had been due in November and December. The new deal will allow the airline to defer payment to 2007.
United’s chairman, president and chief operating officer Glenn Tilton said the deal was “a welcome development”.
The airline is continuing discussions with other banks over outstanding debt.
