ATA EETC trustee objects to plan because certificate holders are excluded from rights offering

New York, Dec. 2 - The trustee for two series of ATA Holdings Corp.'s Enhanced Equipment Trust Certificates objected to the airline's disclosure statement because holders of the certificates are excluded from the proposed rights offering.

Wilmington Trust Co. described the plan of reorganization as "patently unconfirmable" because it does not allow either Wilmington Trust or the holders of the EETCs with the ability to participate in the rights offering. "Thus, the plan unfairly discriminates against Wilmington Trust and the beneficial interest holders under the EETCs," the trustee said in a filing Friday with the U.S. Bankruptcy Court for the Southern District of Indiana.

Wilmington Trust is trustee for ATA's EETCs series 1996-1 and 1997-1.

In addition, Wilmington Trust said the disclosure statement should not be approved because it does not contain adequate information.

Wilmington Trust explained that the EETCs are excluded from the rights offering because investors have to pay cash to subscribe. Wilmington is only allowed to make payments to investors owning the EETCs.

Indianapolis-based ATA, the parent of ATA Airlines, filed for bankruptcy on Oct. 26, 2004. Its Chapter 11 case number is 04-19866.

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