CHICAGO (AP) -- UAL Corp., parent of United Airlines, said in court documents Thursday that it needs another $310 million (euro257 million) in bankruptcy loans to provide a ''stable environment'' as the company works on its reorganization plan.
Chicago-based UAL has said it intends to emerge from bankruptcy this fall and indicated this summer that it may need additional money during the exit process. The request, however, is separate from the airline's ongoing pursuit of exit financing.
In court documents filed to the U.S. Bankruptcy Court for the Northern District of Illinois, UAL said the additional money will provide the company with time ''to complete their restructuring efforts in a systematic and measured way.''
The money will come in the form of an increase to UAL's existing debtor-in-possession loans.
The new deal between UAL and its lenders includes an extension of the maturity date through Dec. 30 and decreases the interest rate governing the loan by 0.25 percentage points.
The request, which would bring the aggregate loan total to about $1.3 billion (euro1.1 billion), is still subject to court approval. It is expected to be addressed at a hearing Friday.
The airline's motion also includes a provision to extend the date by which the company must provide an update business plan to its lenders to Aug. 31.
