Air Transport World

United Airlines.(North America report)(loans for airlines)(Brief Article)

United Airlines in late Dec. filed an updated application with the US Air Transportation Stabilization Board seeking a $1.6 billion federal loan guarantee to support $2 billion in financing to permit it to exit bankruptcy.

JP Morgan and Citigroup each have agreed to underwrite $200 million of the nonguaranteed portion of the loan and $800 million of the guaranteed portion. The airline noted that the amount of the guarantee is "$200 million less than the guarantee" sought in 2002 that was rejected by ATSB, an action that precipitated the airline's Chapter 11 filing in Dec. 2002.

Separately, UA said it lost $75 million last Nov. …

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