ATA Closer to Emerging From Bankruptcy

A federal judge on Wednesday cleared the way for ATA Airlines to begin the process of emerging from bankruptcy, the company said in a news release.

The U.S. Bankruptcy Court in Indianapolis approved the company's disclosure statement, which includes an analysis of the feasibility of the company's restructuring plan.

Now that the statement has been approved, ATA and its parent company, ATA Holdings Corp., along with other subsidiaries, can send the reorganization plan and disclosure statement to its qualifying creditors for votes on the plan.

If the plan is approved, the company could emerge from bankruptcy by the end of February, according to the release.

"This is the last chapter in our difficult restructuring period," said spokeswoman Michelle Foley.

Private equity fund MatlinPatterson Global Opportunities Partners II would provide a total of $120 million in debtor-in-possession financing as part of the plan.

ATA, which is owned by ATA Holdings Corp., filed for Chapter 11 bankruptcy protection in October 2004. Once the nation's 10th largest passenger carrier, it has cut more than 3,000 jobs since it began downsizing from a work force of 7,800 people two years ago.

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