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ATA Airlines repays $15.5 million DIP financing
By Jeff Pines
Washington, Dec. 30 - ATA Airlines Inc. said it repaid the $15.5 million it owes on its debtor-in-possession financing from the Indiana Transportation Finance Authority using cash from its new $40 million DIP through Southwest Airlines.
"This funding helped us cross a critical threshold in the restructuring process. With the help of Indianapolis and Indiana, we were able to achieve the milestone of closing a comprehensive financial transaction and code share agreement with Southwest Airlines," said Gilbert Viets, executive vice president and chief restructuring officer, in a news release.
To get the DIP, Indianapolis-based ATA sold aircraft parts to the IFTA, which leased the parts to the Indianapolis Airport Authority, which then subleased the parts to ATA.
ATA Holdings Corp., ATA Airlines' parent, filed for bankruptcy on Oct. 26 with the U.S. Bankruptcy Court for the Southern District of Indiana. Its Chapter 11 case number is 04-19866.
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