Bankruptcy
ATA Holdings $30 Million DIP from MatlinPatterson
By Indianapolis, IN
Nov 10, 2005, 18:10

ATA filed with the U.S. Bankruptcy Court a motion to approve an agreement in principle with private equity fund MatlinPatterson Global Opportunities Partners II ("MatlinPatterson") for debtor-in-possession ("DIP") financing in the amount of $30 million. In addition to DIP financing, MatlinPatterson has tendered a commitment to invest up to an additional $70 million in equity upon ATA's emergence from its Chapter 11 case. The financing is subject to U.S. Bankruptcy Court and government approvals and certain other customary conditions.

INFO SOURCES

ATA Holdings Corp. (the "Company") (Pink Sheets:ATAHQ), the parent of ATA Airlines, Inc.

FIRMS

ATA Airlines is now in its 33rd year of operation. The carrier offers affordable travel to destinations such as New York, Dallas/Ft. Worth, Hawaii, Florida and Mexico. Through direct and connecting Southwest Airlines codeshare flights, ATA now serves customers in more than 60 markets. For more information, visit ata.com.

MatlinPatterson is a private equity firm specializing in control investments in distressed situations on a global basis.

PEOPLE

John Denison, ATA President and CEO

Frank Conway, ATA Chief Financial Officer

TRANSACTION

MatlinPatterson would make $30 million in debtor-in-possession financing available following final approval by the Bankruptcy Court. ATA expects to seek final court approval of the DIP financing on December 6, 2005. Upon exit from Chapter 11, the $30 million DIP financing would convert into equity of the reorganized Company. In addition, MatlinPatterson would invest or backstop up to $70 million in additional equity, for a total equity investment of $100 million.