ATA Airlines seeks approval of $3.8 million aircraft sale

By Caroline Salls

Pittsburgh, Sept. 15 - ATA Airlines, Inc. requested court approval of the proposed sale of L1011 aircraft and related equipment and spare engines to Flight Support, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of Indiana.

Flight Support has agreed to pay $2.5 million in cash, plus an estimated $1.3 million for secured liabilities associated with the aircraft assets.

Flight Support has paid a $2 million deposit toward the purchase price, which will be returned if it is not the high bidder for the aircraft.

Competing bids are due by 5 p.m. ET on Oct. 3 and must exceed Flight Support's bid by at least $100,000. Subsequent bids at auction must be for at least $100,000 more than the previous bid.

The sale hearing is scheduled for Oct. 7.

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

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