ATA Holdings again extends exchange offers for 9 5/8%, 10½% notes

New York, Dec. 5 - ATA Holdings Corp. (Ca/CC) said it had again extended its previously announced exchange offers and related consent solicitation for its outstanding 10½% senior notes due 2004 and outstanding 9 5/8% senior notes due 2005.

The exchange offers, which were to have expired at 5 p.m. ET Dec. 5, were extended to 5 p.m. ET Dec. 12, subject to possible further extension. The company also extended the consent deadline - by which holders had to tender their notes and deliver consents in order to receive the consent payment - to Dec. 12, in line with the exchange offer expiration and subject to possible further extension.

ATA said it remains in previously announced discussions with a group of holders of the existing notes with respect to their participation in the exchange offers, and it has extended the deadlines on the offers to facilitate these discussions.

The other terms of the exchange offers remain unchanged.

As of Dec. 5, $11.51 million principal amount of 10½% notes and $29.55 million principal amount of the 9 5/8% notes had been tendered and not withdrawn - unchanged from the investor participation levels for both exchange offers on Nov. 21, when the offers had last been extended previously.

As previously announced, ATA Holdings, the Indianapolis-based parent of ATA Airlines Inc., said on Aug. 29 that it had launched exchange offers and consent solicitations for its $175 million of outstanding 10½% notes and $125 million of outstanding 9 5/8% notes.

It initially set a consent deadline of 5 p.m. ET Sept. 12, and said the exchanges would expire at 5 p.m. ET on Sept. 26 (both the deadlines were subsequently extended several times).

The company said it was offering $940 principal amount of new 11% senior notes due 2009 and $60 cash for each $1,000 principal amount of the 10½% notes tendered and $960 principal amount of new 10 1/8% senior notes due 2010 and $40 cash for each $1,000 principal amount of 9 5/8% notes tendered.

Both cash amounts include a $30 consent payment, payable only to those holders delivering their consents by the consent deadline.

The company said the exchange would be conditional on at least 85% by principal amount of each series of the existing notes being tendered and the company receiving the consent of the Air Transportation Stabilization Board for its government guaranteed term loan.

On Sept. 26, ATA Holdings, in announcing the extension of its exchange offers and the consent solicitation deadline, to Oct. 10, noted that the withdrawal deadline for the exchange offers had expired, and said that any existing notes that had already been tendered or which would subsequently be tendered could not be withdrawn.

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