P.M. BRIEFING : Chemical Banking Withdraws From Employee Buyout of UAL
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CHICAGO — Chemical Banking Corp., one of five banks that expressed interest in financing the $4.38-billion employee buyout of UAL Corp., has opted out of the deal--for now, it was reported today.
The bank’s withdrawal less than two weeks before a deadline to secure financing for the deal was described as temporary and subject to change, the Wall Street Journal reported, citing sources it did not identify.
UAL is the parent of United Airlines.
The employee group has until Aug. 9 to secure financing.
Earlier this month, Chemical and four other New York-based banks--Citicorp, Chase Manhattan, Bankers Trust New York and Manufacturers Hanover--expressed interest in becoming the lead lenders for the deal. The banks had been expected to offer about $500 million each, or a total of $2.5 billion.
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