UAL pass-through trustee appeals EETC financing DIP amendment order

By Caroline Salls

Pittsburgh, Aug. 26 - UAL Corp.'s pass-through agreement trustee, Wells Fargo Bank Northwest NA, appealed the U.S. Bankruptcy Court for the Northern District of Illinois' approval of an amendment to the company's debtor-in-possession facility that allows UAL to refinance its class A certificates under its 1997-I Enhanced Equipment Trust Certificates.

The amendment added an up to $320 million tranche C term loan to the DIP, which is secured by 10 UAL-owned aircraft.

If the company obtains the title to all 14 aircraft securing the transaction's outstanding debt by the time the amendment is approved, the tranche C loan will be for up to $350 million.

UAL has already purchased the class A and class B certificates under the EETC transaction and wants to act quickly to purchase the class C certificates and gain a controlling interest in the transaction.

The appeal will be heard in the U.S. District Court for the Northern District of Illinois.

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

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