Attn. United Haters

[skykid]

How long after ch11 and the GAAP let the books settle down before the (mis) management team burns thru 3B+ ?

I think anyone with the ability to think critically and objectively, and with a basic understanding of corporate finance, can see there are 3 "legacy" airlines that are going to be able to make money even with jet fuel at the current price. Two are doing it right now, and one more will be in 4-6 months. Its all right there in the numbers.

 

[AMRCostUnit]

How long after ch11 and the GAAP let the books settle down before the (mis) management team burns thru 3B+ ?

If UAL's international routes had to be sold are they worth more than $3B? That could be the reason the loans being made. I can't even imagine what the terms and condtions are going to be...

Unit

 

[Doug Parker]

Why does Yo-nited need $3B in exit financing???

I thought retarTED was supposed to save them......

 

[JayhawkDude]

3 Legacies

I think anyone with the ability to think critically and objectively, and with a basic understanding of corporate finance, can see there are 3 "legacy" airlines that are going to be able to make money even with jet fuel at the current price. Two are doing it right now, and one more will be in 4-6 months. Its all right there in the numbers.

Ok, I'll bite- which three?

And why?

 

[race#53]

Ok, I'll bite- which three?

And why?

United, US Airways, Delta

All will be rehabilitated in chapt 11.

The rest should have followed them but their share price
and shareholders prevented it.

 

[G4G5]

UAL May Get $3 Billion in Loans As It Seeks to Leave Bankruptcy

The Wall Street Journal, August 26, 2005

United Airlines parent UALCorp., shopping for a financing package that would allow it to step out of bankruptcy-court protection late this year or in early 2006, said the four lending institutions that earlier expressed interest have submitted updated proposals -- some to provide as much as $3 billion in debt-based financing, $500 million more than the company was seeking.

Glenn Tilton, UAL's chief executive, said in a message to employees that based on a review of the carrier's business plan, "these global financial institutions see opportunity in United, even in the midst of the...brutally competitive industry environment."

While he didn't name them, United has said the four potential lenders competing for its business are Citigroup Inc., J.P. Morgan Chase & Co., General Electric Co. and Deutsche Bank AG.

The funding would allow UAL to repay a $1.3 billion interim loan it has been relying on in its 33-month stay in Chapter 11. The company said it hopes to file its plan of reorganization and disclosure statement with the U.S. Bankruptcy Court in Chicago soon, possibly as early as next week.

Those documents will detail how much the various classes of creditors might be expected to recover when the company recapitalizes.

Once the disclosure statement explaining the plan of reorganization is approved by the judge, the creditors get to vote in a process that can take several months.

The Elk Grove Township, Ill., company had intended to make those filings with the court in early August, but its creditors committee asked for more time.

Since then, UAL has concluded important negotiations with lessors that own more than 100 jetliners it operates and has won court decisions that reduced some large municipal-bond liabilities, Mr. Tilton said.

UAL yesterday also reported a net loss of $274 million for July, a result that included $350 million of mostly noncash reorganization expenses relating to renegotiated aircraft financings.

It said it will continue to record large noncash-reorganization items in the third quarter, which is typical for a company in the final stages of Chapter 11

It's not $3 billion, it's actually $1.7 billion once they pay back the $1.3 billion. One can only hope that their exit plan revolves around a way to remain profitable in the $65 a barrel era. Because in a $65 and above world $1.7 won't go that far.

If not, and they have somehow decided that their exit plan revloves around profitability at $45-50 a barrel. It might explain why all of a sudden 4 major banks have decided to come forward.

Let's use some common sence her folks. Why all of a sudden would Citibank get involved with UAL? They underwrite AMR's FF program and have been in bed with AMR for years?

Because the prosperity of UAL is good for AMR? Or could it be that they stand to make some money on UAL? Now if you were lending $3 billion, you need to ask the question is UAL worth more seperated or as a whole?

 

[skykid]

G4G5,

I'd think you would just quit opining on anything relating to this subject. You are the guy who said the PBGC would liquidate United, and later that Congress would undo the pension termination.

Ok, I'll bite- which three?

And why?

United, US Airways, Delta

All will be rehabilitated in chapt 11.

The rest should have followed them but their share price
and shareholders prevented it.

No. AMR, CAL, and UAL. If you analyze the numbers from the last quarter you can see these airlines can deal with fuel costs even at the level there are at right now. My opinion is NWA is within a year or two of turning it around, even with the current labor problems. Unfortunately Delta doesn't have the route structure, in my opinion, to survive on its own out of Ch11, and way too much debt.

 

[furlough-boy]

The funding would allow UAL to repay a $1.3 billion interim loan it has been relying on in its 33-month stay in Chapter 11. It's not $3 billion, it's actually $1.7 billion once they pay back the $1.3 billion. One can only hope that their exit plan revolves around a way to remain profitable in the $65 a barrel era. Because in a $65 and above world $1.7 won't go that far.

Math in public can be dangerous. Don't forget UAL currently has 2.8 billion in cash. So 2.8+1.7= 4.5 billion to come out with.

 

[G4G5]

What's the quote from? Their not mine.

Let's see, Citibank is financially tied to AMR with the FF program and the CItibank card.

Last month UAL did not have an exit plan, this month they do? And all of a sudden 4 large banks come running to lend billions? Things that make you go hummmm.

Now we have $65+ a barrel oil prices, winter around the corner, the traditional low point for airline profits around the corner, 2 out of UAL's 4 largest competitors heading into CH 11 and Citibank all of a sudden wants to go to invest in UAL?

Can you say quick buck? Or do you actualy think that they are in it for the long haul.

 

[G4G5]

Math in public can be dangerous. Don't forget UAL currently has 2.8 billion in cash. So 2.8+1.7= 4.5 billion to come out with.

The title of the WSJ article is :
UAL May Get $3 Billion in Loans As It Seeks to Leave Bankruptcy.

The article states:
The funding would allow UAL to repay a $1.3 billion

The last time I check $3 billion - $1.3 billion = $1.7 Billion. Were you home skooled? The article doesn't mention a single thing about $ 2.8 billion.