Boeing Responds to United Bankruptcy

Chicago, Decmeber 9, 2002 - Boeing Capital will work closely with United Airlines and its bankruptcy trustee to determine what will happen in the aftermath of the airline filing for Chapter 11 bankruptcy protection, said President Jim Palmer.

“We are obviously concerned by United’s decision to file for bankruptcy, but have been well aware of the possibility,” he said.

Boeing Capital has approximately $1.3 billion in financings to United in its $11.5 billion portfolio. Palmer said that the total amount is secured by collateral, primarily 777-200ERs that have delivered in the past three years.

Outcomes under bankruptcy reorganization can vary widely, Palmer said. Under U.S. bankruptcy laws, the airline has 60 days to notify Boeing Capital whether it intends to continue performing under the terms of existing agreements, or Boeing Capital may recover the airplanes. Alternately, the airline may request that the terms of the existing agreements be renegotiated and restructured.

“Any decisions that are made and actions that are taken will consider the best interests of all Boeing stakeholders,” said Palmer.