Amtran says Citicorp, Salomon end financing commitment

By Peter Heap

New York, Sept. 24 - Amtran, Inc. said that Citicorp USA, Inc. and Salomon Smith Barney terminated their commitment for a $175 million secured credit facility to finance taking the company private.

Amtran said that Citicorp cited the "material adverse change" clause in the original commitment, including "in particular recent events."

Amtran, the Indianapolis, Ind. parent of American Trans Air, Inc., had planned to use the credit facility to help finance taking the company private. Amtran said it is now evaluating its options but said there is no assurance it will be able to find alternative financing.

The commitment letter dated June 18, 2001 included a clause that the financings was conditional on their being no material adverse change in the business, condition (financial or otherwise), operations or properties of Amtran and its subsidiaries, taken as a whole, since Dec. 31, 2000, Amtran said. That clause is unlikely now to be satisfied, Amtran said it was told by Citicorp.

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