United sees end to bankruptcy
Despite posting the industry's biggest first-quarter loss, United CFO Jake Brace is "very confident" the carrier will exit bankruptcy protection this year and secure $1.6 billion in federal loan guarantees. Brace tells the Financial Times that the "very thorough" review being done by the Air Transportation Stabilization Board (ATSB) is about over. The ATSB is the federal body assigned with reviewing the post-9/11 loan guarantee program. "We think we are pretty close to finished," Brace said, adding that despite high fuel prices, he expects to file a new business plan with the bankruptcy court by the end of next month. The carrier has slashed some $5 billion in costs as part of its new business plan. United filed for Chapter 11 bankruptcy protection in 2002 after the board rejected its initial request for loan guarantees. United's rivals object to further federal aid. CEO Glenn Tilton renewed his pitch, telling Airwise News/Reuters United has met all requirements. "A loan guarantee's a very valuable thing, and I qualify," Tilton said. "I satisfy the criteria. We're putting all of our energy and all of our efforts into satisfying their criteria and their diligence and their rigorous questions." Tilton told USA Today that even if the airline were to default, taxpayers wouldn't lose money because United's assets are worth two to three times the loan.
Despite posting the industry's biggest first-quarter loss, United CFO Jake Brace is "very confident" the carrier will exit bankruptcy protection this year and secure $1.6 billion in federal loan guarantees. Brace tells the Financial Times that the "very thorough" review being done by the Air Transportation Stabilization Board (ATSB) is about over. The ATSB is the federal body assigned with reviewing the post-9/11 loan guarantee program. "We think we are pretty close to finished," Brace said, adding that despite high fuel prices, he expects to file a new business plan with the bankruptcy court by the end of next month. The carrier has slashed some $5 billion in costs as part of its new business plan. United filed for Chapter 11 bankruptcy protection in 2002 after the board rejected its initial request for loan guarantees. United's rivals object to further federal aid. CEO Glenn Tilton renewed his pitch, telling Airwise News/Reuters United has met all requirements. "A loan guarantee's a very valuable thing, and I qualify," Tilton said. "I satisfy the criteria. We're putting all of our energy and all of our efforts into satisfying their criteria and their diligence and their rigorous questions." Tilton told USA Today that even if the airline were to default, taxpayers wouldn't lose money because United's assets are worth two to three times the loan.
