ATA amends DIP, pushing EBITDARR effective period start to Sept. 1

By Caroline Salls

Pittsburgh, Sept. 9 - ATA Holdings Corp. and Southwest Airlines Inc. entered into a seventh amendment to their debtor-in-possession credit agreement, changing the starting date at which the minimum consolidated EBITDARR periods are effective and adjusting the minimum liquidity covenant, according to an 8-K filing with the Securities and Exchange Commission.

The starting date for effectiveness of the minimum consolidated EBITDARR and minimum adjusted EBITDARR financial covenants was changed to Sept. 1 from July 1.

Without the amendments, the company would not be in compliance with the DIP facility financial covenants, the filing said.

The Air Transportation Stabilization Board and ATA's official committee of unsecured creditors both consented to the amendments.

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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