UAL improves cash position in May, meets DIP requirements

By Carlise Newman

Chicago, June 27 - UAL Corp. filed its May monthly operating report with the U.S. Bankruptcy Court, and said that it met the requirements of its debtor-in-possession financing for the fourth straight month.

As part of its DIP financing agreements, United's lenders required the company to achieve a cumulative EBITDAR loss of no more than $738 million between Dec. 1, 2002 and May 31, 2003.

UAL reported a loss from operations of $155 million in May, and non-operating income of $219 million, which included $300 million that the company received from the U.S. government under the terms of the Emergency Wartime Supplemental Appropriations Act in recompense for costs due to the war in Iraq.

These items resulted in net earnings of $64 million.

The Chicago-based airline improved its cash position for the month and reported an increase in cash of $456 million for May, ending the month with a cash balance of $2.2 billion, which included $659 million in restricted cash. UAL began May with a cash balance of $1.7 billion, which included $651 million in restricted cash.

Excluding the government assistance and $45 million received from large one-time asset sales, the company's cash balance increased $111 million for the month or $3.5 million per day.

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