United Tries To Stop Lease Penalties

Shields, Yvette
March 2003
Bond Buyer;3/25/2003, Vol. 343 Issue 31600, p1
Trade Publication
United Airlines Inc. has asked a federal bankruptcy court to issue a temporary restraining order barring Denver, San Francisco, the Port Authority of New York and New Jersey, and Los Angeles from enforcing lease provisions that permit them to evict the airline for failing to repay special facility revenue bonds.The filings come just a few weeks after the airline asked U.S. Bankruptcy Court Judge Eugene Wedoff for a declaratory judgment terminating Chicago's ability to terminate the airline's lease agreement at O' Hare International Airport.The airline has debt service payments due on April 1, 2003, on special facilities revenue bonds issued on its behalf by Denver, San Francisco, the Port Authority of New York and New Jersey, and Los Angeles.Officials warned on March 24, 2003 that the airline's future use of the largely bond-financed 600 million dollar maintenance facility at Indianapolis International Airport depends largely on whether its mechanics union agrees to contract concessions.


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