Judge: United Would Get Grace Period

Shields, Yvette
March 2003
Bond Buyer;3/28/2003, Vol. 343 Issue 31803, p1
Trade Publication
Bankrupt United Airlines Inc. would have at least a 15-day grace period to halt any eviction action the managers of four airports in Denver, Los Angeles, New York, and San Francisco might initiate when the airline misses 16 million dollars of debt payments due on its special facilities revenue bonds.Elk Grove Township-based United initially requested temporary restraining orders from U.S. Bankruptcy Court Judge Eugene Wedoff preventing the airports in question from triggering cross-default provisions built into leases or in some cases sub-leases that govern the carrier's use of Denver International Airport, Los Angeles International, John F. Kennedy, and San Francisco International.United believes the special facilities revenue bonds are an unsecured debt that was incurred prior to its Chapter 11 bankruptcy filing in December 2002 and under the bankruptcy code, a petitioner cannot continue to repay that type of debt.


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