Debt payment delayed

Tuesday, Dec. 3, 2002 | 11:15 a.m.

CHICAGO -- Scrambling to avoid bankruptcy, United Airlines on Monday delayed paying back a $375 million debt for 10 days.

United's parent company exercised the option of extending repayment until Dec. 12 on aircraft-backed securities to the German bank Kreditanstalt fur Wiederaufbau.

The airline also exercised grace periods on the repayment of other debt obligations, including a $500 million debt to the German bank, plus $45 million in various smaller debts, for debts totaling $920 million.

News of a second machinists' vote on wage concessions and wiggle room for the debt payment lifted UAL stock. Shares rose 83 cents, or 34 percent, to close at $3.28 Monday on the New York Stock Exchange.

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