View Full Version : Atlas Air in Financial Trouble
Speednews publishing the following this morning:
"Atlas Air and Atlas Air Freighter Leasing III were decalred in default by Deutsche Bank due to delay in filing 3Q02 financial statements. If waiver is not granted, lenders can seek accelerated repayment of $246m in loans."
Sounds like there is now an increasing risk this default may trigger cross-defaults from other banks that are lenders to Atlas.
Worth watching closely.
non sched
7th Dec 2002, 23:14
This is actually a technical default. CGO didn't file a 10Q report for the 3rd quarter as required in their loan covenant because earnings are being restated per a requirement of an SEC investigation. That's plenty of trouble, not to mention the numerous class action lawsuits by investors. These are definitely troubled times for Atlas.:(
SilverThunder
9th Dec 2002, 15:18
If Atlas is in trouble why are they buying airplanes and hiring?
LGW Vulture
9th Dec 2002, 19:55
Silver...................
May I draw your attention to what National Airlines did prior to their sad demise???? Yes took on more crews and airplanes...
...........Stolen your Thunder!
Aviation Trainer too
10th Dec 2002, 07:39
Silver Thunder,
There is two sides to Atlas: the airline and the leasing/ financing side.
Atlas made their killing over the years not by flying but by over financing clapped out 747-200s. After that they could do the same with discounted new 747-400s. Bankers love this stuff, it is more sexy to tell your wife that you financed (albeit wrongly) an aircraft specially a 74 rather than an oil rig.. The problem only starts when you stop adding aircraft as you will need the over financed bit of your aircraft as working capital... specially in a difficult market which means a lower cash flow from your airline operation...
Thought you guys were flying your socks off at the moment... gotta be raking it in.
non sched
11th Dec 2002, 00:40
The Chief Financial Officer resigned today. They have an ongoing SEC investigation.:eek:
Heilhaavir
12th Dec 2002, 12:50
Aren't you guys planning to hire in January ?
Pat
Ct.Yankee
12th Dec 2002, 16:13
Interviews are today, 12Dec and tomorrow 13Dec on 36th st at the "glass palace" in Mia.