United Pulls of Restructure of Some Debt

Busdrvr

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Aug 20, 2002
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On 11/5/2002 4:13:58 PM UAL777flyer wrote:

United and German Bank KfW Agree To Restructure Debt

Tuesday November 5, 3:29 pm ET

CHICAGO--(BUSINESS WIRE)--Nov. 5, 2002--United Airlines (NYSE: UAL - News) announced today that it has reached an agreement in principle with Kreditanstalt fur Wiederaufbau (KfW) to restructure approximately $500 million in debt obligations due in November and December of 2002. The resulting restructured obligation will have a final maturity in 2007. All terms and conditions of this restructuring are subject to definitive documentation which United and KfW intend to conclude promptly.

We appreciate this significant show of confidence in United's future by KfW, said Glenn Tilton, United's chairman, president and chief executive officer. This is a welcome development in our continuing efforts to achieve an out-of-court financial recovery.





This is a big step in avoiding Ch.11!!!
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Well there's reason to believe that this absolutely plays into some sort of corporate transaction spearheaded by Rono Dutta, the state of Alabama, KfW, and the KGB involving the transfer of route authorities and jets to U after the exchange of all UAL widebodies for AN-124's.....
 

Cosmo

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Aug 20, 2002
840
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[blockquote]
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On 11/5/2002 4:30:19 PM Busdrvr wrote:

Well there's reason to believe that this absolutely plays into some sort of corporate transaction spearheaded by Rono Dutta, the state of Alabama, KfW, and the KGB involving the transfer of route authorities and jets to U after the exchange of all UAL widebodies for AN-124's.....

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Actually, it's the AN-225 -- because 6 engines are better than 4! [img src='http://www.usaviation.com/idealbb/images/smilies/9.gif'] [img src='http://www.usaviation.com/idealbb/images/smilies/3.gif'] [img src='http://www.usaviation.com/idealbb/images/smilies/2.gif']

Seriously, this is great news for UA!!!
 

Ukridge

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Aug 27, 2002
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www.usaviation.com
GGPillow worte: LMAO I'm glad I'm not the only one who feels Mr. reason to believe aka Mr. I have sources is full of it.

Congratulations to those of you at UAL. This is a topic of discussion here within the European financial community. I do not have a source but I imagine that Mr. Tilton has exercised a bit of pay-back with your chums at Lufthansa and the German credit market. With UAL the most important cog in Mr. Webers alliance, he could not afford to lose you.

I am sure Mr. Chip is at work and has not had time to rain on your parade. Check back frequently though for the viewpoint that this in some conspiratorial manner means the demise of UAL.
 

UAL777flyer

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Aug 20, 2002
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United and German Bank KfW Agree To Restructure Debt
Tuesday November 5, 3:29 pm ET
CHICAGO--(BUSINESS WIRE)--Nov. 5, 2002--United Airlines (NYSE: UAL - News) announced today that it has reached an agreement in principle with Kreditanstalt fur Wiederaufbau (KfW) to restructure approximately $500 million in debt obligations due in November and December of 2002. The resulting restructured obligation will have a final maturity in 2007. All terms and conditions of this restructuring are subject to definitive documentation which United and KfW intend to conclude promptly.
We appreciate this significant show of confidence in United''s future by KfW, said Glenn Tilton, United''s chairman, president and chief executive officer. This is a welcome development in our continuing efforts to achieve an out-of-court financial recovery.
This is a big step in avoiding Ch.11!!!
 

GGpillow

Advanced
Aug 19, 2002
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www.usaviation.com
[blockquote]
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On 11/5/2002 4:30:19 PM Busdrvr wrote:

[blockquote]
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On 11/5/2002 4:13:58 PM UAL777flyer wrote:

United and German Bank KfW Agree To Restructure Debt

Tuesday November 5, 3:29 pm ET

CHICAGO--(BUSINESS WIRE)--Nov. 5, 2002--United Airlines (NYSE: UAL - News) announced today that it has reached an agreement in principle with Kreditanstalt fur Wiederaufbau (KfW) to restructure approximately $500 million in debt obligations due in November and December of 2002. The resulting restructured obligation will have a final maturity in 2007. All terms and conditions of this restructuring are subject to definitive documentation which United and KfW intend to conclude promptly.

"We appreciate this significant show of confidence in United's future by KfW," said Glenn Tilton, United's chairman, president and chief executive officer. "This is a welcome development in our continuing efforts to achieve an out-of-court financial recovery."





This is a big step in avoiding Ch.11!!!
----------------
[/blockquote]

Well there's reason to believe that this absolutely plays into some sort of corporate transaction spearheaded by Rono Dutta, the state of Alabama, KfW, and the KGB involving the transfer of route authorities and jets to U after the exchange of all UAL widebodies for AN-124's.....

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[/blockquote]



LMAO I'm glad I'm not the only one who feels Mr. reason to believe aka Mr. I have sources is full of it.
 
OP
B

Busdrvr

Veteran
Aug 20, 2002
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On 11/5/2002 5:23:37 PM eolesen wrote:

I have to admit I'm a bit humbled here, since I had no expectation that this debt would be rolled over, but it was. Now, the question is "at what price in 2007"...
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I told you it would on this forum months ago, you don't trust me?
 
OP
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Busdrvr

Veteran
Aug 20, 2002
2,217
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On 11/5/2002 4:52:33 PM Ukridge wrote:


Congratulations to those of you at UAL. This is a topic of discussion here within the European financial community. I do not have a source but I imagine that Mr. Tilton has exercised a bit of "pay-back" with your chums at Lufthansa and the German credit market.
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Now if he can just get us a fair share of the transatlantic flying....
 
I have to admit I'm a bit humbled here, since I had no expectation that this debt would be rolled over, but it was. Now, the question is at what price in 2007...

Also, can someone explain to me again why the ESOP shares were dumped last week at half their current value?....
 
OP
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Busdrvr

Veteran
Aug 20, 2002
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On 11/5/2002 5:23:37 PM eolesen wrote:

Now, the question is at what price in 2007...

CARPE DIEM!!!!

Also, can someone explain to me again why the ESOP shares were dumped last week at half their current value?....

Please don't remind me.... Here's the story. There is an ESOP commitee, 6 people, membership based on workgroups shares. Lots of lawyers standing behind them looking over thier shoulders. We paid WAY too much for the shrea, now 7 years later, post Enron LAWSUITS, the ESOP commitee gets scared of fiduciary responsibilities. so they gave the decision power to the State Street bank (ESOP Trustee). They file to sell (and have sold) roughly 11 million shares (20% of the employee shares). Of course they had no fiduciary responsibility at $80 or $40 or $20, only at $2.00. they didn't sell when Goodwin said Perish or Creighton started the doomsday clock. They waited until the absolute bottom, and likely made the bottom lower. They now have a responsibility, as the price goes up and BK chances go back down, to BUY the stock back. So we get less stock for our money, and the 26.5 million shorts out there get some help. To say the pilots are *****off would be an understatement, and don't be surprised if you hear more about the situation. In the meantime, my investment in UAL is up 30% (thank goodness for dollar cost averaging) and I bought more shares while SSB was selling than I have in ESOP.
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767jetz

Veteran
Aug 20, 2002
3,286
2,779
[blockquote]
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On 11/5/2002 4:30:19 PM Busdrvr wrote:

Well there's reason to believe that this absolutely plays into some sort of corporate transaction spearheaded by Rono Dutta, the state of Alabama, KfW, and the KGB involving the transfer of route authorities and jets to U after the exchange of all UAL widebodies for AN-124's.....

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[/blockquote]

Oh my God, Busdrvr! Have you been out drinking with Chip?
[img src='http://www.usaviation.com/idealbb/images/smilies/9.gif']
Hope you bought him a few to ease his pain!
 

Bear96

Veteran
Aug 20, 2002
2,926
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[blockquote]
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On 11/5/2002 4:52:33 PM Ukridge wrote:

I am sure Mr. Chip is at work and has not had time to rain on your parade. Check back frequently though for the viewpoint that this in some conspiratorial manner means the demise of UAL.
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Yes I am sure Chip will shortly be spinning this into how this is yet another sign of the impending demise of UAL is in, despite what it may look like to those of us poor schlubs who are out of his informed sources loop...

...AND no doubt it gives yet more reason to believe (somehow) that USAirways is on its way to world domination... as long as the U employees also see the light about how overpaid they are and how they must give up even more in way of compensation (except the U pilots of course).
 

MrMarky

Advanced
Hi AVEK--

You make some valid and sobering points.

Nonetheless, good news at UAL has been few and far between. This is truly good news and the stressed out folks at United deserve a chance to put their thumbs up. This is a morale booster.

Hope everything is going well with you.

Take care,

Marky
 

avek00

Senior
Aug 28, 2002
391
0
Enough with the Chip-bashing. FWIW, in the case of US, the company obtained RATIFIED agreements from ALPA and AFA, and had tentative approval from the ATSB, but was nonethless forced to file for Chapter 11 because its creditors (esp. those with aircraft-backed debt) and lessors were unwilling to grant the company sufficient relief out-of-court. Simply put, the folks at US experienced many highs in the initial phases of their own restructuring, only to end up in bankruptcy anyways.

I'm not trying to rain on the parade at UAL, but today's info. has to be viewed in its proper context. One major hurdle has been overcome, but there are still several landmines out there that could literally put UAL in BK tomorrow, such as:

1. Aircraft-backed debtholders and lessors who may not grant UA any relief;

2. The failure to obtain meaningful concessionary contracts from the IAM, AFA, or other workgroups; and

3. The inability of the company to successfully reform its corporate governance structure, should the ATSB or UAL's lenders find the current structure to be unacceptable.; and of course,

4. The inability to obtain an ATSB-backed guarantee.

Again, today's news is something to be happy about, but don't let the euphoria overshadow the gravity of UAL's current situation.
 

767jetz

Veteran
Aug 20, 2002
3,286
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On 11/5/2002 8:03:46 PM avek00 wrote:

Enough with the Chip-bashing.

Why? It's better than 'avek00' bashing, isn't it? Besides, he brings it on himself.

I'm not trying to rain on the parade at UAL, but...

Yes you are. The sun is shining here today! A well deserved bump in morale and stock price. Now go rain somewhere else. We're all well aware of the pitfalls ahead.
 

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