ATA creditors' committee objects to exclusivity extension

By Caroline Salls

Pittsburgh, Aug. 16 - ATA Holdings Corp.'s official committee of unsecured creditors objected to the company's request to extend its exclusive period to file a plan of reorganization, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of Indiana.

The company wants to extend its exclusive period to file a plan to Nov. 10 from Aug. 22.

According to the objection, the company's attempt to demonstrate cause "merely by reciting all of the issues that the [company has] been occupied with during these Chapter 11 cases, does not provide a basis for a further extension of such periods."

The committee said many of the issues have been resolved and are typical of Chapter 11 cases, and there is no cause preventing the company from filing a plan of reorganization "today or in the very near future."

Also, according to the objection, under the company's debtor-in-possession agreement with Southwest Airlines Co., a plan must be filed by Sept. 30.

"Despite these requirements, and the grave consequences of the [company's] failure to satisfy them, the request that the court extend the exclusive periods past these dates is, at the very least, curious, and, at worst, a potential breach of [its] fiduciary duty," the filing said.

ATA Holdings Corp., ATA Airlines' parent, filed for bankruptcy on Oct. 26, 2004. The Dulles, Va.-based company's Chapter 11 case number is 04-19866.

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