United flies into bankruptcy (official)
CNN
United flies into bankruptcy
No. 2 carrier seeks protection from creditors, largest bankruptcy in industry history.
December 9, 2002: 8:00 AM EST
By Chris Isidore, CNN/Money Staff Writer
NEW YORK (CNN/Money) - United Airlines, the world's No. 2 airline, filed for bankruptcy protection Monday, succumbing to continued losses and staggering debt payments it could no longer afford to make.
The decision to file for bankruptcy in the U.S. Bankruptcy Court in the Northern District of Illinois follows a weekend of meetings of the company's board of directors, and a warning from union leadership that the bankruptcy was "unavoidable and imminent."
The carrier says it has arranged for about $1.5 billion in loans, known as "debtor-in-possession" financing needed to fund operations during a court supervised reorganization.