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UAL gets court OK
Bankruptcy court approves $800M in financing, permission to pay employees, vendors and consultants.
December 10, 2002: 3:24 PM EST

NEW YORK (CNN/Money) - United Airlines won bankruptcy court approval Tuesday on a series of motions it made Monday to receive financing and pay employees, vendors and consultants.

United, the world's No. 2 airline, said the approvals will allow it to continue normal operations. The carrier filed for the industry's largest bankruptcy early Monday.

Included in the court action Tuesday was approval of $800 million of loans known as debtor-in-possession financing, which allows those lenders to be repaid before other creditors. United has arranged for a total of $1.5 billion in DIP financing. The court will rule on the rest of the financing in the future.

Also approved was payment of salaries and benefits to 80,000 employees, continuation of its Mileage Plus program, Red Carpet Clubs and other customer programs, payments to fuel vendors, and continuation of interline agreements with which it can share passenger bookings with other airlines.

United also said that it operated 99 percent of its schedule Monday, and had a 90 percent on-time performance, despite the bankruptcy filing.

"These results show that United employees pulled together to focus on serving our customers to the best of their abilities," said a statement from United Executive Vice President of Operations Pete McDonald.

Shares of UAL (UAL: up $0.16 to $1.09, Research, Estimates) gained more than 15 percent in late-afternoon trading Tuesday, even though the New York Stock Exchange said Monday it was weighing a delisting of its shares.  Top of page




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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.