ATA gets final approval for $15.5 million DIP

By Jeff Pines

Washington, Dec. 20 - ATA Holdings Corp. received final approval for its $15.5 million debtor-in-possession financing, according to an order filed with the U.S. Bankruptcy Court for the Southern District of Indiana Friday.

The agreement required ATA to sell aircraft parts, free and clear of any liens, to the Indiana Transportation Finance Authority. The authority then leased the property to the Indianapolis Airport Authority, which in turn leased the parts to ATA.

Indianapolis-based ATA must buy the parts back after the closing of the sale of six of its Chicago-Midway Airport gates and a maintenance hangar to Southwest Airlines or Feb. 15, 2005, whichever comes first.

As part of the repurchase of the property, ATA will reimburse the Indiana Transportation Finance Authority for interest on the funds it provided with a variable interest rate.

ATA, which owns ATA Airlines, filed for bankruptcy on Oct. 26. Its Chapter 11 case number is 04-19866.

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