Atlas Air to reorganize under Chapter 11 bankruptcy
Air freight carriers Atlas Air and Polar Air Cargo will operate under bankruptcy after parent company Atlas Air Holdings filed for protection from creditors.
The move was expected for several months as the Purchase, N.Y.-based company struggled with mounting losses and legal troubles stemming from improper accounting of revenue that forced the company to restate earnings for several quarters.
In December, Atlas said it was working to renegotiate equipment lease and debt terms ahead of an anticipated bankruptcy filing on Feb. 1.
Atlas officials stressed that service would continue without interruption. Bankruptcy will allow the company to pay vendors, suppliers and employees without interruption instead of having to make expensive loan and lease payments. Atlas said it has secured $50 million in conditional debtor-in-possession financing and exit financing to help get through bankruptcy.