njcapt
Freak power candidate
- Joined
- Nov 26, 2001
- Posts
- 1,096
Finally
American Trans Air Parent Reaches Deal
Mon Dec 22, 7:41 PM ET
By MARK JEWELL, AP Business Writer
INDIANAPOLIS - American Trans Air shares rose Monday after the nation's 10th-largest carrier said it has reached a tentative agreement with investors who had been reluctant to embrace a plan to help ATA survive a cash crunch.
Analysts said the tentative deal on a bond exchange offer and ATA's recent return to profitability leave the airline in better position than last summer, when it warned it would be unable to meet debt obligations.
The low-fare carrier must pay off $300 million in debt over the next two years and faces lease payments for new Boeing 737s and 757s ordered before the 2001 terrorist attacks aggravated an industrywide downturn.
"They are a potentially strong airline," said Michael Boyd, president of The Boyd Group, an aviation-consulting firm in Evergreen, Colo. "Now that the economy is roaring back, it doesn't surprise me that you're going to see the financial community a little more willing to listen to them."
Still, as talks continued with bondholders toward a final agreement, ATA said Friday it had been forced to extend the deadline for its exchange offer for an eighth time since announcing the bond swap offer Aug. 29.
ATA's Indianapolis-based parent, ATA Holdings Corp., wants more time to repay $175 million in bond notes due in late 2004 and $125 million in notes due in 2005. The latest extension expires Jan. 2.
In the first month after ATA made its offer, holders of $41 million in bond notes agreed to the swap. But the airline has not won agreement from additional bondholders since September, leading to the deadline extensions. Investors who did not consent formed a committee to negotiate with ATA.
To ease its cash crunch, ATA in August reached an agreement on restructuring lease payments for its new jets.
ATA is North America's largest charter operator and the biggest operator of military charters. The 30-year-old carrier operates hubs for its scheduled service at Chicago's Midway Airport and Indianapolis International Airport.
ATA Holdings shares closed at $9.50 on the Nasdaq Stock Market, up 21 cents.
http://story.news.yahoo.com/news?tmpl=story&u=/ap/20031223/ap_on_bi_ge/ata_debt_1
American Trans Air Parent Reaches Deal
Mon Dec 22, 7:41 PM ET
By MARK JEWELL, AP Business Writer
INDIANAPOLIS - American Trans Air shares rose Monday after the nation's 10th-largest carrier said it has reached a tentative agreement with investors who had been reluctant to embrace a plan to help ATA survive a cash crunch.
Analysts said the tentative deal on a bond exchange offer and ATA's recent return to profitability leave the airline in better position than last summer, when it warned it would be unable to meet debt obligations.
The low-fare carrier must pay off $300 million in debt over the next two years and faces lease payments for new Boeing 737s and 757s ordered before the 2001 terrorist attacks aggravated an industrywide downturn.
"They are a potentially strong airline," said Michael Boyd, president of The Boyd Group, an aviation-consulting firm in Evergreen, Colo. "Now that the economy is roaring back, it doesn't surprise me that you're going to see the financial community a little more willing to listen to them."
Still, as talks continued with bondholders toward a final agreement, ATA said Friday it had been forced to extend the deadline for its exchange offer for an eighth time since announcing the bond swap offer Aug. 29.
ATA's Indianapolis-based parent, ATA Holdings Corp., wants more time to repay $175 million in bond notes due in late 2004 and $125 million in notes due in 2005. The latest extension expires Jan. 2.
In the first month after ATA made its offer, holders of $41 million in bond notes agreed to the swap. But the airline has not won agreement from additional bondholders since September, leading to the deadline extensions. Investors who did not consent formed a committee to negotiate with ATA.
To ease its cash crunch, ATA in August reached an agreement on restructuring lease payments for its new jets.
ATA is North America's largest charter operator and the biggest operator of military charters. The 30-year-old carrier operates hubs for its scheduled service at Chicago's Midway Airport and Indianapolis International Airport.
ATA Holdings shares closed at $9.50 on the Nasdaq Stock Market, up 21 cents.
http://story.news.yahoo.com/news?tmpl=story&u=/ap/20031223/ap_on_bi_ge/ata_debt_1
