United Air Lines files notice of ninth DIP amendment

By Jeff Pines

Washington, Nov. 9 - United Air Lines Inc. wants court approval for a proposed ninth amendment to the company's debtor-in-possession financing.

The notice filed with the U.S. Bankruptcy Court for the Northern District of Illinois Monday would give the airline a waiver to the cumulative consolidated EBITDAR covenant, which United anticipates it will not be able to meet for the 12-month periods ending Oct. 31, Nov. 30 and Dec. 31.

The amendment would also require the company to have $750 million of unrestricted cash on hand instead of $600 million.

The fees for the amendment are not to exceed $2.5 million.

JPMorgan Chase Bank and Citicorp USA are the co-administrative agents for the facility.

The Chicago-based airline filed for bankruptcy on Dec. 9, 2002. Its Chapter 11 case number is 02-48191.

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