United Files Updated ATSB Loan Guarantee Application
This week, United reached a formal agreement to secure $2 Billion in exit financing with JPMorgan and Citigroup. The financing is contingent upon United gaining approval of its update to its previous proposal to the Air Transportation Stabilization Board (ATSB) for a federal loan guarantee, which was officially updated today.
The formal agreement with JPMorgan and Citigroup is a major step towards exiting Chapter 11 and speaks highly of the confidence the financial world is placing in United’s success. Bill Repko, Managing Director, Head of Restructuring, JPMorgan stated yesterday to the media, “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. United has done all the right things to position itself for a successful exit.
United Airlines is a stronger company today through the determination, substantial sacrifices and hard work of Flight Attendants and other employees. The collective work of Flight Attendants and all employees helped to create a viable business plan for the carrier and provide a springboard for the future success of our country’s historic airline.
We are convinced that approving United’s application with the update to its previous proposal is consistent with the purposes of the Air Transportation Stabilization Act. Approving the loan guarantee is in the best interests of the airline industry, the flying public, our economy as well as the Flight Attendants and all dedicated employees at United Airlines.
