CHICAGO å- December 10, 2002 å- UAL Corp. (NYSE: UAL), the parent company of United Airlines, today announced that it received approval from the U.S. Bankruptcy Court for a series of the companyå‘s å“first dayå” motions that help ensure United Airlineså’ operations can continue throughout the reorganization proceeding.
“The Court’s approval of our first day motions will ensure that United can continue operations around the world and remain focused on serving our customers as we go through this process,” said Glenn F. Tilton, Chairman, President and Chief Executive Officer of UAL.
At yesterday’s hearing, the court approved, among other things, motions related to:
Normal payment of employee salaries, wages and benefits;
Continued normal operation of the Mileage Plus program, Red Carpet Clubs and other customer programs;
Continued payment to fuel vendors;
Payment to overseas suppliers for the delivery of good and services;
Assumption of interline agreements; and
Continued honoring of obligations to travel agents.
The court approved, under an interim order, access to $800 million of the debtor-in-possession (DIP) financing for use by the company. These funds, in addition to approximately $800 million in unrestricted cash-on-hand, will be available to fund ongoing operations. In connection with its Chapter 11 filing, UAL arranged commitments for $1.5 billion in DIP financing. The DIP financing is structured as a $300 million facility from Bank One, and a $1.2 billion loan from a group led by J.P. Morgan Chase and Citibank, and includes CIT Group and Bank One.
The company reported that, as expected, it was business as usual. Flights continued as scheduled and customers continued to receive reliable and safe service in the U.S. and abroad. In fact, more than 90 percent of United’s flights were on time, with a 99 percent completion rate.
“These results show that United employees pulled together to focus on serving our customers to the best of their abilities. All of us are committed to providing customers with the safe and reliable service they expect from United. Every day during this process, we will work to prove to them and our other stakeholders that United will emerge from this process stronger and better positioned to meet their needs for the long term,” said Pete McDonald, EVP - Operations.
As announced yesterday, UAL Corp., United Air Lines and 26 direct and indirect U.S. subsidiaries filed for protection under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division.
United Airlines operates nearly 1,800 flights a day on a route network that spans the globe. News releases and other information about United Airlines can be found at the company`s website at www.united.com.