As part of a restructuring approved by the U.S. Bankruptcy Court for the Southern District of Florida, Atlas Air Worldwide Holdings, parent of Atlas Air and Polar Air Cargo, was able to discharge more than $600 million of pre-petition debt and enhance profitability through a reduction in operating costs and elimination of capacity.
Atlas Air and Polar Air Cargo operate the world’s largest fleet of Boeing 747 freighter aircraft. Atlas Air provides freighter aircraft, crew, maintenance and insurance (ACMI) services to major airlines. Polar operates global, scheduled airport-to-airport freighter service.
Jeffrey H. Erickson, president and CEO of the holding company, said the airline would continue to implement cost-reduction initiatives. It’s initial plan called for reduced financial costs through restructuring of aircraft-related debt and lease obligations. It obtained exit financing intended to provide $60 million in liquidity and retired its debtor-in-possession financing facility obtained under CIT Group and Ableco Finance LLC.