ATA gets court OK for Southwest Airlines' stock transaction stalking horse bid

By Jennifer Lanning Drey

Portland, Ore., Dec. 2 - ATA Airlines, Inc. obtained court approval to name Southwest Airlines Co. as the stalking horse bidder in connection with the proposed sale of ATA's business, according to a source familiar with the case.

The approval came Tuesday from the U.S. Bankruptcy Court for the Southern District of Indiana.

As previously reported, Southwest's bid calls for a stock transaction sale to be completed under ATA's plan of reorganization.

Specifically, Southwest will purchase 100% of the common stock issued by reorganized ATA in exchange for $7.5 million.

Southwest's proposal requires ATA to file a plan of reorganization based on the sale terms by Dec. 5, to obtain court approval of the disclosure statement by Jan. 6 and to secure a plan confirmation order by March 2.

If ATA chooses an alternate transaction, ATA will pay Southwest a 5% break-up fee and reimburse up to $250,000 of its expenses.

ATA, an Indianapolis-based airline, filed for bankruptcy on April 2, 2008. Its Chapter 11 case number is 08-03675.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.