On 12/2/2002 4
32 PM DLFlyer31 wrote:
But here's a line that caught me off guard:
"United Airlines (NYSE:[A href="http://finance.yahoo.com/q?s=ual&d=t"]UAL[/A] - [A href="http://biz.yahoo.com/n/u/ual.html"]News[/A]) announced that it will be relying on the grace periods included in certain debt obligations due to be repaid today, including $375 million in enhanced equipment trust certificates (EETC) and [STRONG]the approximately $500 million owed to Kreditanstalt fur Wiederaufbau (KfW), which is due today as a result of the failure to meet all of the conditions to a further extension of the repayment obligation[/STRONG]."
Anyone know what happened with the refinancing of this debt?
Although that debt was refinanced, apparently thw refinancing was subject to certain conditions. According the this statement, all of those conditions were not met. One of those conditions might have been cost concessions from all employee groups, or perhaps concessions from other lenders, or both of those factors, and/or some other items we know nothing about.
Anyway, that $500 mil apparently has a 7 day grace period for part of the loan and a 10 day grace period for the other part. Which DEFINITELY means that if UAL does not get the loan guarantee within about a week, they'll file.
On another website, I predicted (before the no vote by the mechanics was announced) that the ATSB would give a decision between Dec 2. and Dec. 9. I think it's obvious now that if the mechanics vote no this Thursday, UAL will file either on Friday or more likely over the weekend.