Western Union Says It May File for Bankruptcy Protection

Western Union said Wednesday that it may default on interest payments due June 15 and that it might seek protection from creditors under federal bankruptcy law.

In a filing with the Securities and Exchange Commission, Western Union said it must work out a favorable restructuring of its debts and raise funds by selling property or making a new public offering. But the company added that it has exhausted available bank credit and already has put up much of its remaining assets to secure loans and meet pension-plan obligations.

On the other hand, Western Union said, the sale of its microwave network should be completed this year, and it is continuing to consolidate operations and trim costs--moves that it said should pay off eventually if it can overcome its cash deficiency.

The filing is the latest installment in a seven-year history of hard times that have plagued the company formed by investors 139 years ago to string telegraph lines across the United States.