ATA says $50-$100 million more capital needed to be going concern to Dec. 31

By Ted A. Knutson

Washington, May 13 - ATA Holdings Corp., the parent of ATA Airlines, estimates a capital infusion of $50 million to $100 million will be needed to keep the carrier as a going concern through Dec. 31.

The firm noted it will require more capital if agreements are not reached with unions to save money, there are no cost reductions in its fleet and if codesharing with other carriers becomes less successful.

ATA added it will not be able to continue as a going concern if it is unable to arrive at and implement a reorganization plan.

The company made the announcement in a 10-Q filing with the Securities and Exchange Commission.

Indianapolis-based ATA filed for bankruptcy with the U.S. Bankruptcy Court for the Southern District of Indiana on Oct. 26, 2004. Its Chapter 11 case number is 04-19866.

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