Atlas Air subsidiaries default on loan due to delay in third quarter results

By Sara Rosenberg

New York, Dec. 2 - Atlas Air Inc. and Atlas Freighter Leasing III, Inc. defaulted on their credit facilities due to the failure to provide financial statements for the third quarter of 2002, according to a filing with the Securities and Exchange Commission. Deutsche Bank Trust Company Americas is the agent on the loans.

Previously, the companies announced that these statements would be delayed until a reaudit and restatement was completed. However, the 15-day cure period for the default has now passed causing this to automatically become an event of default under the terms of the credit agreement.

The companies continue to seek a waiver from the lenders on this matter and to seek additional waivers if necessary to avoid defaults under any other indebtedness.

If a waiver is not obtained on this event of default, repayment of approximately $246 million in outstanding indebtedness would be accelerated, the filing concluded.

Atlas Air and Atlas Freighter Leasing III are subsidiaries of Atlas Air Worldwide Holdings, Purchase, N.Y. provider of aircraft, crew, maintenance and insurance for airlines.

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