The ATSB has informed us of
their final decision not to provide a loan guarantee. While we disagree
with their decision, we are gratified by the ATSB’s public recognition of
our progress and are already moving forward to secure the exit financing
we need to take United out of bankruptcy. The message from the ATSB is
that we can get the exit financing we need on our own. Throughout this process, we have been in constant communication with our
lenders, and they continue to be tremendously supportive of us. We
expected that a significant portion of the exit financing would be
debt-based - with or without the ATSB guarantee. That will continue to be
the case, and we are now holding discussions with our lenders and others
to determine what an appropriate overall capital structure might be. The
discussions we are having will enable us to fill that out, so we can
continue moving forward toward our exit from Chapter 11.
The work we have done over the past 18 months has created a solid, highly
competitive business platform that we expect will attract the capital
necessary to exit.