ATA (American Trans Air, Inc.), the principal subsidiary of ATA Holdings Corp. (Nasdaq:ATAH), today announced that it has finalized the loan requirements established by the Air Transportation Stabilization Board (ATSB) for a $148.5 million federal guarantee. The full loan for $168 million was funded today. ATA will use the loan proceeds to provide liquidity during the continuing economic downturn in the airline industry that evolved after the terrorist attacks on September 11, 2001.
“We want to thank the ATSB for their hard work in closing this loan,” said George Mikelsons, Chairman and CEO.
On September 26, the ATSB gave ATA conditional approval for the loan. As part of the loan, ATA Holdings Corp. issued warrants on its common stock that will grant the lenders an equity stake of approximately 12 percent.
Now celebrating its 30th year of operation, ATA is the nation`s 10th largest passenger carrier based on revenue passenger miles. ATA operates significant scheduled service from Chicago-Midway and Indianapolis to over 40 business and vacation destinations. To learn more about the Company, visit the website at www.ata.com.