ATA: Previously protected investor information not valid after business plan changes

By Caroline Salls

Pittsburgh, Oct. 31 - ATA Holdings Corp. said investment information protected by confidentiality agreements that expired Monday is no longer valid in light of changes to the company's plans for emergence from Chapter 11 bankruptcy, according to an 8-K filing with the Securities and Exchange Commission.

ATA's new business plan is entirely different from the one contained in a confidential information memorandum distributed in August, according to the filing. The revised business plan, which has not yet been disclosed publicly, forms the basis for ongoing discussions with interested potential investors in the company.

The new plan contains different assumptions for the operations of the reorganized company.

According to the filing, in August ATA distributed the memorandum to parties which executed confidentiality agreements.

Under the memorandum, the recipients agreed to use it solely for the purpose of evaluating a possible investment in, loan to or other financial transaction with ATA and to keep the non-public information in the memorandum confidential.

The company agreed to create a summary of information in the memorandum and the terms and conditions of any possible transaction no later than Oct. 31.

The memorandum contained information describing ATA's financing needs, pro forma capitalization, future business operations and projected financial statements, all based on its business plan as of mid-August.

However, since the distribution of the memorandum, the filing said ATA has substantially altered its plans for emergence from Chapter 11.

ATA Holdings Corp., ATA Airlines' parent, filed for bankruptcy on Oct. 26, 2004 in the U.S. Bankruptcy Court for the Southern District of Indiana. The Dulles, Va.-based company's Chapter 11 case number is 04-19866.

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