Atlas Air delays filing 10K financial report; cuts jobs
Karen Walker, Washington DC (03Apr03, 00:18 GMT, 252 words)
Cargo carrier Atlas Air has been forced to delay the filing of a required financial report because of the on-going re-audit of financial statements for 2000 and 2001 and has returned one of its Boeing 747Fs to its lessor.
The New-York based company also announced today it is cutting 30% of its ground staff workforce. A spokesman says the jobs cuts will affect 170 people – 65 in New York, 32 in Miami, 28 in other US locations and 45 open positions that will now not be filled. Most of the layoffs take immediate effect.
Atlas says in a statement today that its inability to file its 2002 annual report on form 10-K by the 31 March deadline will create a default under some of its debt and lease obligations.
Atlas announced last week that it was in negotiations with creditors and lessors about restructuring payments.
A single 747F has been returned to its lessor, although Atlas says it is continuing negotiations with the lessor, despite the fact that the lessor has begun legal action against Atlas. The lessor’s identity is not being revealed. The carrier operates an all-747 fleet.
The company’s 2000 and 2001 financial results were originally audited by Arthur Andersen, but were required to be re-audited. Atlas says the delay in the 2002 10-K filing is due primarily to difficulties encountered in obtaining necessary historical records and data to enable the 2000 and 2001 re-audit to be completed.
Atlas says the job cuts should save the company $14 million annually.
Source: Air Transport Intelligence news