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United ‘to exit bankruptcy in February’
United Airlines is poised to emerge from Chapter 11 bankruptcy protection in early 2006 after securing a $3 billion debt financing deal.
The carrier claimed the arrangement marked a “significant step” towards exiting Chapter 11 in February.
A six-year debt financing package has been signed with financial giants JPMorgan and Citigroup as joint lead arrangers.
The terms are to be put before the US Bankrupcty Court for a hearing on October 21 together with an amended plan for reorganising the airline.
United chairman and CEO Glenn Tilton said: “United’s restructuring positions the company to compete successfully with the strongest airlines and to confront ongoing industry volatility.
“With the last three years as a proving ground and with these global institutions as our partners, we now look forward to moving beyond our restructuring and focusing all of United’s energy and resources on our customers, our investors and our employees.”
JPMorgan Chase vice chairman James Lee said: “United has highly attractive assets and a tested, successful management team.
“The company has proven its ability to navigate through difficult and volatile circumstances while continuing to improve its operations and financial performance.”
The airline’s chief financial officer Jake Brace claimed the airline was ” a far different company coming out of bankruptcy than it was going in”.
Report by Phil Davies
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