Atlas Air begins distributing new common stock under plan of reorganization

By Caroline Salls

Pittsburgh, July 12 - Atlas Air Worldwide Holdings, Inc. has begun distributing 16.1 million shares of its new common stock to general unsecured creditors under its plan of reorganization, according to a filing with the Securities and Exchange Commission.

The U.S. Bankruptcy Court for the Southern District of Florida confirmed the plan on July 16, 2004. Atlas Air Worldwide and its subsidiaries, including Atlas Air, Inc. and Polar Air Cargo, Inc. emerged from Chapter 11 bankruptcy on July 27, 2004.

Under the plan, shares will be issued to holders in amounts equal to their claim.

Remaining shares will be distributed quarterly beginning on Oct. 11, according to the filing.

Including the current distribution, the company has issued 18.89 million shares of new common stock under the plan, or about 94.5% of the 20 million new shares originally allocated.

This does not include 652,815 shares issued under the company's 2004 Long-Term Incentive and Share Award Plan since emergence or an additional 200,000 shares issued in August 2004 in connection with a settlement involving the restructuring of an aircraft lease.

As of May 19, $604.6 million in claims have been allowed and $60.4 million claims are being disputed.

Under the plan, holders of general unsecured claims against Polar Air Cargo will not receive any of the new common stock. Instead, they will cash equal to 60% of their claims.

Atlas Air is a Purchase, N.Y.-based provider of aircraft, crew, maintenance and insurance freighter aircraft to major airlines.

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