ATA Holdings files motion to sell leases to AirTran

By Jeff Pines

Washington, Nov. 2 - ATA Holdings Corp. filed a motion Tuesday with the U.S. Bankruptcy Court for the Southern District of Indiana to sell leases at Chicago's Midway Airport, New York's LaGuardia Airport, and at Washington's Reagan National Airport to AirTran Airways Inc.

The sale is subject to a court-approved auction and to the Air Transportation Stabilization Board's approval.

A Nov. 9 hearing on the bidding procedures is scheduled.

As previously reported, AirTran is the stalking horse bidder with an $87.5 million offer for the leases.

ATA has agreed to pay a 3% break-up fee plus up to $1 million in fees and expenses if another bidder tops AirTran's offer.

Competing bids must include the $87.5 million purchase price, the 3% break-up fee and expense reimbursement for AirTran plus $1 million more.

ATA wants competing bids in by Nov. 23 so it can hold an auction, if necessary, on Dec. 1 in Indianapolis.

ATA, an Indianapolis-based airline holding company, filed for bankruptcy on Oct. 26. Its Chapter 11 case number is 04-19866.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.