United, Engulfed in Fiscal Turmoil, Gets 15-Day Eviction Grace Period

Shields, Yvette
April 2003
Bond Buyer;4/1/2003, Vol. 344 Issue 31605, p3
Trade Publication
The U.S. Bankruptcy Court Judge Eugene Wedoff entered an order on March 31, 2003 that gives United Airlines Inc. a 15-day grace period to halt any eviction action the managers of four airports may take in case if the airline fails to make $16 million in interest payments due on special facilities revenue bonds. Lawyers for the various airport managers, issuers, municipalities, and bond trustees associated with the four airports Denver International Airport, John F. Kennedy International Airport, Los Angeles International Airport, and San Francisco International Airport did not object to the order. United Airlines wants to prevent the airports from acting on cross-default provisions included in its lease agreements that allow the airports to terminate the airline's lease in the event that a payment on special facilities revenue bonds is missed. Lawyers for the airports and the bond trustees contend that the debt service payments are an obligation of the airline's leases that govern its use at the airports.


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