2.5 Billion Loan Sources

[herkav8r]

Update 1: United Gets Four Offers of Debt Financing
02.14.2005, 11:07 PM

United Airlines said Monday it has received four offers of debt financing worth as much as $2.5 billion to help the nation's No. 2 carrier emerge from bankruptcy.

United spokeswoman Jean Medina would not say which financial institutions had made the offers and said there was no schedule for when any final deal might be reached. Moreover, any such agreement would be based upon United realizing the $2.5 billion in cost savings the carrier has already laid out, she said.

POST THE LINK PLEASE

 

[UAL_TECH]

Update 1: United Gets Four Offers of Debt Financing
02.14.2005, 11:07 PM

Chief Executive Glen Tilton has said he anticipates the company leaving court protection this autumn.

[post="247985"][/post]​

B) UT

 

[Borescope]

BOHICA,

"Moreover, any such agreement would be based upon United realizing an ADDITIONAL $2 billion in savings on salaries, pensions and other operating expenses". :down: How much more are they going to ask for?

http://biz.yahoo.com/ap/050215/united_financing_2.html

 

[coolflyingfool]

That is a lot of money and a lot of cuts. I cannot see the employees of UAL agreeing to that much more in cuts and productivity gains. WOW!

 

[herkav8r]

That is not an additional 2.5 B in cuts, just what is already planned. This is good news for employees, not gloom and doom that some of you are seeing. I would think that would add a little more job security in a BK that was supposed to liquidate in Dec 2003.

 

[Fly]

Are you sure about that Herk? As I read it, it says "ADDITIONAL 2.5 B in cuts on salaries, pensions and other operating expenses."

 

[herkav8r]

I am sure? No, I am always guessing when it comes to what this company is doing. However, it says the 2.5 as laid out in the business plan. I think these are already scheduled cuts.

 

[Fly]

Sad....but it doesn't say that. It says:

CHICAGO (AP) -- United Airlines said Monday it has received four offers of debt financing worth as much as $2.5 billion to help the nation's No. 2 carrier emerge from bankruptcy.
United spokeswoman Jean Medina would not say which financial institutions had made the offers and said there was no schedule for when any final deal might be reached. Moreover, any such agreement would be based upon United realizing an additional $2 billion in savings on salaries, pensions and other operating expenses.

______________________

It does go on to say:

"They are contingent on us completing the work we've identified in our business plan," Medina said.


What "WE'VE identified in our business plan", not anything about what labor just gave up. They haven't posted the 'business plan' but it's becoming clear to me that the business plan is MORE cuts to labor. There is no secret here, when United publicly releases a news blip that says they need ADDITIONAL anything, they mean it. (and I don't see anywhere in that article that says the $ labor just agreed to 2 weeks ago)

 

[herkav8r]

Well, Fly we both can read something and get something totaly different out of it.
"any such agreement would be based upon United realizing the $2.5 billion in cost savings the carrier has already laid out, she said."

I don't see any additional cuts other than what we know is coming. Pensions are gone. It is a fact of life. In the past decade not one traditional pension has been started. They are a thing of the past. The best we can hope is to save the pension for the "more mature" employees and the younger groups get a 401K.

 

[spacewaitress]

Your pension is gone maybe, we still have a strike vote regarding any unresolved portions of our contract.

 

[herkav8r]

So, you strike and it will gone also. Make a choice, job no pension, no job no pension. Life is full of choices. Yours, however, will effect 60,000 other people.

 

[Fly]

Ahhh, ok Herk, I see where you read that. I only read the article that Borescope posted, and that comment wasn't included there. I certainly hope they don't come back again as they state (but I doubt it because the past predicts the future)

 

[herkav8r]

It is a very interesting ride. I am happy for the past year that I have been watching it from the outside. I think though, I will be going the fun this May due to recalls.

 

[737nCH11]

Herk,

Why on earth would you ever come back to this mess?

 

[herkav8r]

Because I miss flying and I started my own company while I was away and I will have something to fall back on if I really don't like it.