Cargo Carrier Files For Bankruptcy Protection

Among the steps Atlas Air Worldwide Holdings will implement under Chapter 11 bankruptcy protection are reducing the size of its fleet to match demand, reducing leasing and secured borrowing costs, and reducing operating costs. The air cargo carrier was expected to file for Chapter 11 bankruptcy protection in December; however, it had not completed discussions with creditors and lessors relative to its new business plan.

Atlas stressed that it is business as usual for the company. To ensure the continued normal operation of Atlas and Polar, the company said that it has requested relief from the bankruptcy court allowing it to, among other things, continue making regular and timely payments to fuel and other critical and foreign vendors, service providers and governments, obtain debtor-in-possession financing and pay employee salaries, wages and benefits without interruption.

Atlas has arranged commitments for $50 million in debtor-in-possession and exit financing along with agreements from its major secured creditors and lessors. Atlas had reported revenues of $1.18 billion and operating expenses of $1.2 billion for a $24.2 million operating loss. It's net loss for 2002 was $74.2 million, according to forms filed with the Securities and Exchange Commission on Dec. 12, 2003.

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