ATA covenants' effective date delayed to April 1

By Ted A. Knutson

Washington, April 19 - ATA Holdings Corp. said the effective date for the minimum consolidated and adjusted EBITDARR covenants in its debtor-in-possession financing with Southwest Airlines Co. was delayed to April 1 from March 1.

Without the amendment, ATA would not have complied with the financial covenants in the DIP facility.

The lending package provides ATA with $40 million plus a $7 million loan guarantee from Southwest.

The announcement was made in an 8-K filing with the Securities and Exchange Commission.

Indianapolis-based ATA, the parent of ATA Airlines, filed for bankruptcy on Oct. 26, 2004 with the U.S. Bankruptcy Court for the Southern District of Indiana. The case number is 04-1986.

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