Atlas
Join Date: Jun 2001
Location: Rockytop, Tennessee, USA
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I hear the Atlas wet lease deal with United has been blocked by UAL ALPA so the hiring is on hold and the bankruptcy lawyers are back on Atlas property...
From today's Rocky Mountain News:
Purchase, N.Y.-based Atlas Air, formerly of Golden, facing a Friday deadline to renegotiate most of its bonds, had ratings on $1.4 billion of debt suspended by Moody's Investors Service and said the New York Stock Exchange will delist the cargo carrier's stock.
http://www.rockymountainnews.com/drm...243985,00.html
From today's Rocky Mountain News:
Purchase, N.Y.-based Atlas Air, formerly of Golden, facing a Friday deadline to renegotiate most of its bonds, had ratings on $1.4 billion of debt suspended by Moody's Investors Service and said the New York Stock Exchange will delist the cargo carrier's stock.
http://www.rockymountainnews.com/drm...243985,00.html
Last edited by Airbubba; 10th Sep 2003 at 04:31.
Join Date: Jun 2001
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Atlas Air sees prepackaged Chapter 11 filing in Dec.
Sat September 13, 2003 12:13 AM ET
NEW YORK, Sept 12 (Reuters) - Cash-strapped cargo airline Atlas Air Worldwide Holdings Inc. said on Friday it expects to file a prepackaged Chapter 11 bankruptcy by the end of this year in a bid to restructure its debt.
The company, based in Purchase, New York, which has been hurt by sluggish cargo shipments throughout a three-year U.S. economic slump, said it anticipates having agreements in place with its major creditors and lessors at the time of the filing.
It expects that to happen in the first half of December.
Atlas, which had warned of the possibility of a Chapter 11 filing, said it could not anticipate when it might emerge from bankruptcy.
In the same statement, Atlas said it was unlikely a previously announced restatement of its 2000 and 2001 finances would ever be completed because it was unable to locate certain financial records from the period. [the dog ate them <g>]
The company had delayed filing its financial statements for 2002 as well as the first two quarters of 2003 because of the anticipated restatement, but released those unaudited results on Friday.
For the year ended Dec. 31, 2002, Atlas reported a net loss of $36 million. Atlas also reported a net loss of $65.3 million for the first six months of 2003.
It had $142.7 million in cash and short-term investments as of June 30.
It expects an audit of its 2002 results to be completed by the end of September.
Separately on Friday, Atlas said its Atlas Air unit reached a critical agreement with debt holders.
It said in a statement that the holders of a majority of its Class A Enhanced Equipment Trust Certificates (EETCs) had entered into a term sheet agreement regarding a restructuring of the equipment notes and leases related to the airline's financing transactions.
The EETCs were issued in 1998, 1999 and 2000 to finance the carrier's initial fleet of 12 Boeing 747-400 freighter aircraft.
Atlas, which operates air cargo through its Atlas Air and Polar Air Cargo units, has been in talks with lessors for months to reduce or defer aircraft payments.
Both commercial airlines and cargo carriers are attempting to lower payment terms with lessors to better match the declining market value of aircraft.
The company made a partial payment to debt holders in July in exchange for more time to work on a restructuring.
As part of the deal, the holders also agreed to extend a forbearance agreement, which expired Friday, until December 15. The extension will allow Atlas to prepare final documentation relating to the agreement, it said.
The deal is subject to Atlas' compliance with covenants and conditions in the agreement and execution of final documentation, the company said in a statement.
Earlier this week the New York Stock Exchange suspended trading in Atlas' common stock.
http://reuters.com/financeNewsArticl...anyResultsNews
_____________________________________________
Look for the "business as usual" news stories soon, they customarily accompany airline bankruptcy announcements, e.g. :
http://www.denverpost.com/Stories/0,...030286,00.html
http://denver.bizjournals.com/denver...9/smallb3.html
http://qsilver.queensu.ca/law/news/i...-aircanada.htm
Sat September 13, 2003 12:13 AM ET
NEW YORK, Sept 12 (Reuters) - Cash-strapped cargo airline Atlas Air Worldwide Holdings Inc. said on Friday it expects to file a prepackaged Chapter 11 bankruptcy by the end of this year in a bid to restructure its debt.
The company, based in Purchase, New York, which has been hurt by sluggish cargo shipments throughout a three-year U.S. economic slump, said it anticipates having agreements in place with its major creditors and lessors at the time of the filing.
It expects that to happen in the first half of December.
Atlas, which had warned of the possibility of a Chapter 11 filing, said it could not anticipate when it might emerge from bankruptcy.
In the same statement, Atlas said it was unlikely a previously announced restatement of its 2000 and 2001 finances would ever be completed because it was unable to locate certain financial records from the period. [the dog ate them <g>]
The company had delayed filing its financial statements for 2002 as well as the first two quarters of 2003 because of the anticipated restatement, but released those unaudited results on Friday.
For the year ended Dec. 31, 2002, Atlas reported a net loss of $36 million. Atlas also reported a net loss of $65.3 million for the first six months of 2003.
It had $142.7 million in cash and short-term investments as of June 30.
It expects an audit of its 2002 results to be completed by the end of September.
Separately on Friday, Atlas said its Atlas Air unit reached a critical agreement with debt holders.
It said in a statement that the holders of a majority of its Class A Enhanced Equipment Trust Certificates (EETCs) had entered into a term sheet agreement regarding a restructuring of the equipment notes and leases related to the airline's financing transactions.
The EETCs were issued in 1998, 1999 and 2000 to finance the carrier's initial fleet of 12 Boeing 747-400 freighter aircraft.
Atlas, which operates air cargo through its Atlas Air and Polar Air Cargo units, has been in talks with lessors for months to reduce or defer aircraft payments.
Both commercial airlines and cargo carriers are attempting to lower payment terms with lessors to better match the declining market value of aircraft.
The company made a partial payment to debt holders in July in exchange for more time to work on a restructuring.
As part of the deal, the holders also agreed to extend a forbearance agreement, which expired Friday, until December 15. The extension will allow Atlas to prepare final documentation relating to the agreement, it said.
The deal is subject to Atlas' compliance with covenants and conditions in the agreement and execution of final documentation, the company said in a statement.
Earlier this week the New York Stock Exchange suspended trading in Atlas' common stock.
http://reuters.com/financeNewsArticl...anyResultsNews
_____________________________________________
Look for the "business as usual" news stories soon, they customarily accompany airline bankruptcy announcements, e.g. :
http://www.denverpost.com/Stories/0,...030286,00.html
http://denver.bizjournals.com/denver...9/smallb3.html
http://qsilver.queensu.ca/law/news/i...-aircanada.htm
Join Date: May 2003
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Yet again the iniquity of Chapter 11 proceedings!!!!
A company which can't or won't file its annual reports for years, makes huge losses, lays off its people, and yet is allowed to compete against healthy, well run companies without paying loan payments to creditors and lessors, yet again another example of the American 'level playing field'. All this does is drag down the whole aviation sector.
Let's hope that American (or anywhere elses) companies are banned from flying in the EU while in administration under the soon to be drafted EU/US aviation agreement. I will certainly be writng to my MP/MEP...anyone fancy joining a crusade?
A company which can't or won't file its annual reports for years, makes huge losses, lays off its people, and yet is allowed to compete against healthy, well run companies without paying loan payments to creditors and lessors, yet again another example of the American 'level playing field'. All this does is drag down the whole aviation sector.
Let's hope that American (or anywhere elses) companies are banned from flying in the EU while in administration under the soon to be drafted EU/US aviation agreement. I will certainly be writng to my MP/MEP...anyone fancy joining a crusade?
Join Date: Jun 2001
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I can't keep my mouth shut
Schrodingers Cat you should change your name to Don Quixote.
Couldn't you volunteer at a soup kitchen or something with all that free time and energy?
Couldn't you volunteer at a soup kitchen or something with all that free time and energy?
Join Date: Jan 2003
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Worked with them myself a few years ago, was MIA based.
They could not even verify my employment for my home mortgage.
Latest I hear from those left in the company is they are trying to add the cost of the hotels while working to their income an make it taxable. On the W-2
Its my understanding that ALPA is involved in this since it will create a new standard for all the US carriers if they get away with this.
Atlas is losing contracts left an right so its no suprise of the bankruptcy news.
They could not even verify my employment for my home mortgage.
Latest I hear from those left in the company is they are trying to add the cost of the hotels while working to their income an make it taxable. On the W-2
Its my understanding that ALPA is involved in this since it will create a new standard for all the US carriers if they get away with this.
Atlas is losing contracts left an right so its no suprise of the bankruptcy news.
Join Date: Jan 2003
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Not really sure how they are doing it except perhaps adding the cost of the hotel as taxable income as salary earned.
Company provided housing maybe.
Perhaps some Atlas crewmembers would explain this.
Know that freinds their are really riled up about it.
While training with them they only paid us per diem at 48usd a day.
No salary until line training.
On my W-2 for the year they listed the perdiem as salary, had to fight the IRS as this was perdiem an not taxable.
Won the battle but it was long an hard.
Company provided housing maybe.
Perhaps some Atlas crewmembers would explain this.
Know that freinds their are really riled up about it.
While training with them they only paid us per diem at 48usd a day.
No salary until line training.
On my W-2 for the year they listed the perdiem as salary, had to fight the IRS as this was perdiem an not taxable.
Won the battle but it was long an hard.
Join Date: Dec 2000
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The company is claiming that travel provided by the company to one's base and hotel rooms at one's base is impuded income, and is taxable. The rate of the tax is based on the crewmember's gross income. It's a drive by the company to force the crews to give up gateway travel to their base. The company made the six new-hires sign a condition of employment to establish a residence within 130 miles of their base in order to avoid paying travel for them.
It's not only Atlas. They (airlines) are all begining to read from the same playbook. Some airlines are taxing buddy passes. The company requires one to give the buddy's Social Security Number to tax the buddy for the pass.
Actually, Atlas crews got something the rest of the industry doesn't have, gateway travel. However, now that they have it, it's going to be very difficult for the company to take it away. Hence, the taxable income interpretation.
It's not only Atlas. They (airlines) are all begining to read from the same playbook. Some airlines are taxing buddy passes. The company requires one to give the buddy's Social Security Number to tax the buddy for the pass.
Actually, Atlas crews got something the rest of the industry doesn't have, gateway travel. However, now that they have it, it's going to be very difficult for the company to take it away. Hence, the taxable income interpretation.
