United Airlines' parent raising cash
UAL Corp. wants to strengthen its cash balance by $275M by the end of the year by selling assets and agreeing to a new aircraft financing agreement.
CHICAGO (AP) -- UAL Corp., the parent of United Airlines, said Wednesday it is further shoring up its cash position amid a major downturn in the economy and persistently high fuel prices.
The Chicago-based company said financing transactions will boost its cash balance by roughly $275 million by the end of the year.
UAL has completed a $125 million aircraft financing agreement, receiving about $60 million on Tuesday, and will receive the rest of the money by mid-October.
United also has completed or reached deals to sell certain assets for roughly $140 million. The carrier did not specify the assets in a statement Wednesday.
Lastly, United plans to substitute certain cash collateral with a letter of credit, generating $10 million in net incremental cash in the fourth quarter.
The company said it still has more than $3 billion of unencumbered assets to further improve its cash position if needed.
CNN