DENVER -- United Airlines and its machinists union have reached a tentative contract agreement. The deal formalizes one hammered out late last month that averted a threatened strike.

Denver International Airport's dominant carrier says it has reached a tentative five-year contract deal with the machinists union.

The International Association of Machinists and Aerospace Workers represents about 20,000 baggage handlers, customer service representatives and other ground workers.

The deal formalizes an agreement in principle reached late last month that averted a threatened strike. Workers now have until July 22 to vote on the contract offer.

United will have new long-term agreements with all its labor groups if machinists ratify the deal.

The company expects to save about $700 million annually by rewriting its union contacts -- a step the carrier said is crucial to its exit from bankruptcy.

The bankrupt carrier has some 6,000 employees in Colorado.

Bankruptcy Judge Eugene Wedoff was expected to rule on United's request to extend until Sept. 1 its exclusive right to file a reorganization plan, without competition from outside investors. United's exclusivity period expires July 1.

Wedoff has granted United such extensions several times during the 2½-year bankruptcy. But there have been recent signs some creditors might be growing impatient with the airline's lengthy restructuring.

United's unsecured creditors committee in a court filing June 9 -- while backing the exclusivity extension -- implied there are outside investors that might have interest in restructuring the nation's No. 2 airline.

Also, two banks that hold United debt -- Bank of New York and U.S. Bank National Association -- objected in a court filing this month to the judge granting United's management team another extension to exclusively file a reorganization plan.