ATA agrees to claims resolution with EETC indenture trustee Wilmington Trust

By Caroline Salls

Pittsburgh, Feb. 21 - ATA Holdings Corp. agreed to a stipulation with EETC transaction indenture trustee Wilmington Trust Co. that resolves Wilmington Trust's claims in connection with a 2000 leveraged lease transaction for seven aircraft, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of Indiana.

Wilmington Trust filed eight claims against ATA in connection with the lease transaction.

Under the stipulation, Wilmington Trust will be allowed one $82 million claim against ATA Holdings Corp. and one $82 million claim against ATA Airlines, Inc.

Wilmington Trust will only be allowed recovery for one of the claims under the company's plan of reorganization. In return, ATA will withdraw its second claims objection against Wilmington Trust.

The stipulation is contingent on ATA's plan of reorganization taking effect.

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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