Chicago ? As United Airlines’ stock sank below a dollar a share Friday, a message to employees by its CEO called a Chapter 11 bankruptcy filing by the nation’s No. 2 airline “more likely.”

Shares in parent UAL Corp. fell 19 cents to 81 cents a share on the New York Stock Exchange – the second day of a selloff following the rejection of its request for a $1.8 billion loan guarantee.

“We have been preparing for a Chapter 11 filing for months,” a recorded message from CEO Glenn Tilton said. “Chapter 11 becomes a more likely outcome because it allows us to restructure and to continue to serve our customers while we do it.”

Sources familiar with the process, who spoke on condition of anonymity, said United was preparing to file for Chapter 11 bankruptcy Sunday. The carrier was completing the terms of a $1.5 billion debtor-in-possession loan, the sources said. The loan would enable the airline to keep flying in bankruptcy.