Atlas Air amends loan, obtains waiver of defaults

By Sara Rosenberg

New York, Jan. 8 - Atlas Air Inc. amended the loan agreements maintained by Atlas Air and Atlas Freighter Leasing III, Inc. and received a waiver of defaults under the loan agreements and related aircraft leases.

On Nov. 29, the company announced that it was in default on its agreements due to an inability to provide financial statements for the third quarter of 2002.

Under the amendment and waiver, lenders have agreed to waive the default on condition that the company provides third quarter financial statements on or before March 31, 2003, according to a filing with the Securities sand Exchange Commission. Furthermore, the company must deliver certain operating and business information with respect to 2003 and beyond to lenders.

Lenders also agreed to waive financial covenants, including maintenance of a minimum level of cash and cash equivalents, through March 31.

"Atlas Air expects to discuss financial covenant levels for the balance of 2003 with the bank lenders later in the first quarter," the filing said.

Lastly, lenders have agreed to defer the scheduled prepayment of principal to Jan. 27 from Jan. 2 and reduce the amount of the scheduled prepayment to $10 million.

Atlas Air is a Purchase, N.Y. provider of aircraft, crew, maintenance and insurance for airlines.

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