United Secures $2 Billion in Effort to Emerge from Bankruptcy

December 17, 2003

United Secures $2 Billion in Effort to Emerge from Bankruptcy
December 17, 2003 – UAL Corp., the parent company of United Airlines, has reached an agreement to secure $2 billion in exit financing with J.P. Morgan Chase & Co. and Citigroup, marking a major step toward emerging from Chapter 11 bankruptcy protection.

Under the financing plan, J.P. Morgan and Citigroup will each underwrite $200 million of the non-guaranteed portion of the financing and $800 million of the guaranteed portion, which all requires the backing of a loan guarantee from the Air Transportation Stabilization Board.

United Chairman and CEO Glenn F. Tilton said the willingness of both banks to include a substantial amount of at-risk funding reflects the progress United has made since declaring bankruptcy.

"This is a vastly different company than it was a year ago, and we believe all the pieces are now in place to enable United to compete effectively," said Bill Repko, managing director and head of restructuring at J.P. Morgan.