UAL refinances aircraft, sells assets to raise $275 million

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United Airlines parent UAL Corp re-financed aircraft deals and agreed to sell "certain assets" to bolster its cash position with $275 million by year-end.

The aircraft financing deal means UAL received about $60 million yesterday and will receive another $65 million by mid-October, the company says.

The agreement to sell assets will provide about $140 million, of which $30 million was received in the third quarter. Another $110 million will be added in the fourth quarter "subject to reaching final documentation and other conditions" with the buyers.

"We are further strengthening our cash position and we are pleased to close this transaction, particularly in this market environment, said Kathryn Mikells, who will become chief financial officer after 1 November.

UAL last week announced amending credit cards pacts to add another $1.2 billion of liquidity to its balance sheet.