Atlas Air defers lease payments, loses aircraft to lease termination

Chicago, Feb. 28 - Atlas Air Worldwide Holdings, Inc. has begun negotiating with some of its aircraft lessors to reduce or defer operating lease payments on five Boeing 747-200 and one Boeing 747-300 aircraft. Atlas has not made six lease payments and may defer others pending the outcome of the negotiations.

Atlas also said it is returning one Boeing 747-200 to the lessor after receiving a notice of lease termination. The Purchase, N.Y. airfreight company said it cannot give an assurance that other lessors will not exercise remedies available to them, including starting litigation, under their leases in response to any non-payments.

Atlas Air also said it is in discussions with its lenders about financial covenant levels beyond March 31. Additional waivers will likely be needed to extend the requirement to provide financial statements beyond that date.

As previously reported, the company amended its bank loans in January to waive previously announced events of default. The bank lenders also agreed to waive application of financial covenants contained in the loan agreements through March 31.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.