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Exit financing and restructure.

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Source: Jane Allen

Date: Oct 07, 2005

 Hello this is Jane Allen with an update for Friday, October 7, 2005.

This has certainly been a banner week for our company. On Thursday, we announced that that we have received commitments for a three billion dollar loan from Citigroup Inc. and JPMorgan Chase to finance our exit from bankruptcy. Today we submitted that exit financing agreement to the bankruptcy court, and we expect the judge to approve the deal on October 21. This is the last major piece of our restructuring and a very positive step toward emergence from bankruptcy. With this money we can repay our interim bankruptcy loan and emerge from bankruptcy court protection on February 1, 2006.

Two of the top financial institutions in the world are providing our exit financing. These institutions know our business very well and do not make commitments like this lightly. This exit financing represents the high degree of confidence these banks have in our capabilities, which is a credit to everyone in this company. This loan commitment is on very competitive terms, and the fact that we have obtained these commitments is validation for the difficult decisions we've made and the hard work we've done to improve our performance and our ability to compete in a rapidly changing industry.

This is an excellent result for our company and we will soon be able to close this chapter of our corporate life. Our long-awaited exit from bankruptcy is in sight and it is real. The restructure is coming to an end, and we have earned the right to look forward and compete.

We now have a tremendous opportunity in front of us and we cannot afford to waste it. As I've said so often, exit from bankruptcy was never a destination, but a necessary step toward our ultimate success. We'll take the lessons learned from our experiences and apply them going forward. And we'll be able to transfer the energy and resources that were needed for the restructure, and direct them toward our customers, investors and employees.

We must now move forward in a way that will satisfy all three of these constituencies. We want to deliver the best possible service, product and safety to our customers, in the most cost-effective way possible for our investors. And we want this to be a company that has value for our employees - a place where they want to work.

This means that we have to move out of our restructure mindset and start thinking more about the future. And as we move forward, we will be able to direct more of our collective corporate energy and resources toward the customer. I know that you and your colleagues have remained clearly focused on our customers throughout our bankruptcy, but the process of restructure has required significant corporate resources which will now be freed.

As we move out of restructure, we must remain resilient and look for opportunities for continuous improvement. The marketplace we are in continues to be brutally competitive, and external factors like high fuel costs and even shortages are a reality. Every day we must remind ourselves of who we are and what we're all about, and everything we do must contribute toward our overall mission.

The future won't be any easier - it will call for the same hard work, creativity and sound business decisions that have brought us to this point. But the future will be more rewarding and fun because our efforts will now go toward creating value for our customers, our investors and our employees.

We have arrived at this place because of your continued focus and commitment. Thanks to all of your hard work over the past three years, we are now in an excellent position to begin the next chapter.

That's all for today. Fly safely and thanks for listening.

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