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ATA Holdings and Southwest agree to DIP financing amendment
By Ted A. Knutson
Washington, Feb. 9 - ATA Holdings Corp. and Southwest Airlines Co. have consented to change the date that minimum consolidated EBITDARR and minimum adjusted EBITDARR financial covenants would be effective to Feb. 1 from Jan. 1 in a first amendment to the credit agreement.
The amendment was agreed upon Feb. 3.
Without it ATA would not have complied with the debtor in possession financial covenants.
On Dec. 23, Southwest agreed to provide ATA Airlines, Inc. with a DIP loan facility of up to $47 million.
The Indianapolis-based airline holding company ATA Holdings Corp., ATA Airlines' parent, filed for bankruptcy on Oct. 26 with the U.S. Bankruptcy Court for the Southern District of Indiana. Its Chapter 11 case number is 04-19866.
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