Court approves state loan to struggling ATA
Federal bankruptcy judge will next consider the sale of all or part of the Indianapolis-based airline.
By Ted Evanoff
November 15, 2004
A federal bankruptcy judge approved the $15.5 million state bail-out loan today for ATA Airlines Inc., an essential piece of ATA's plan to scale back as a carrier with at least 1,000 employees in Indianapolis.
U.S. Bankruptcy Judge Basil Lorch on Thursday morning will consider a second piece of the reorganization -- the sale of all or part of ATA.
The Indianapolis-based carrier favors the sale of its 17 gates at Chicago, New York and Washington to AirTrans Airways for $87.5 million, which would provide cash for ATA to regroup around an Indianapolis hub.