ATA to sell Chicago Express, court rules
The Associated Press
March 21, 2005 10:40 PM
INDIANAPOLIS -- ATA Holdings Corp. will accept bids for Chicago Express through Friday, close down the commuter line next Monday and sell it April 1, a bankruptcy court ruled Monday.
If no $1 million-plus bids are received, the sale will be scuttled and ATA instead will most likely liquidate the commuter line, the U.S. bankruptcy court in Indianapolis said.
The ruling came after ATA consultant Compass Advisers LLC reported it has eight undisclosed sale proposals from possible buyers including two air carriers interested in Chicago Express.
The decision rebuffed Boston investor Jack E. Robinson's effort to move up the sale date to this week. Robinson's NatTel LLC had offered $100,000 and contended Chicago Express' federal operating certificates would be become invalid when it closed March 28.
Indianapolis-based ATA filed for Chapter 11 bankruptcy protection in October and since then has been restructuring its operations, liquidating various assets and negotiating wage concessions with its pilots, flight attendants and mechanics.
Judge Basil Lorch III also on Monday approved ATA's request to set aside $214,000 in retention bonuses for five key employees of Chicago Express.
ATA had requested the bonuses, noting the Federal Aviation Administration would be inclined to continue the commuter line's operating certificate beyond the shutdown if top employees were on hand.
Indianapolis-based ATA, operator of ATA Airlines, bought Chicago Express for $1.9 million in 1999 and now plans to close the 600-employee company to cut costs.
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hahahahahahahaha. nice one.
