THIS STORY HAS BEEN FORMATTED FOR EASY PRINTING

United Airlines may ask for credit revision: report

Email|Print|Single Page| Text size – +
May 5, 2008

NEW YORK (Reuters) - UAL's <UAUA.O> United Airlines is mulling asking its banks to rejig the terms of its credit facility in an effort to get crucial financial flexibility, the Financial Times reported on Monday.

The carrier may approach its lenders, Citigroup <C.N>, JPMorgan Chase <JPM.N> and Credit Suisse <CSGN.VX>, as early as Monday to request concessions on its financing arrangements, the FT said, citing people close to the situation.

The ability of airlines to comply with bank covenant and loan agreements has already been reported to be a near-term concern. Northwest <NWA.N> has asked lenders in its $1.2 billion bank loan to do away with fixed-charge coverage ratios for the next 12 months, according to Reuters Loan Pricing Corp.

As of March 31, United had a cash balance of $2.9 billion and a coverage ratio of 1.5.

United representatives were not available immediately for comment.

(Reporting by Aarthi Sivaraman; Editing by Quentin Bryar)

© Copyright 2008 Reuters. Reuters content is the intellectual property of Reuters or its third-party content providers. Any copying, republication, or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters.

more stories like this

  • Email
  • Email
  • Print
  • Print
  • Single page
  • Single page
  • Reprints
  • Reprints
  • Share
  • Share
  • Comment
  • Comment
 
  • Share on DiggShare on Digg
  • Tag with Del.icio.us Save this article
  • powered by Del.icio.us
Your Name Your e-mail address (for return address purposes) E-mail address of recipients (separate multiple addresses with commas) Name and both e-mail fields are required.
Message (optional)
Disclaimer: Boston.com does not share this information or keep it permanently, as it is for the sole purpose of sending this one time e-mail.