ATLAS AIR AVOIDS DEFAULT ON DEUTSCHE BANK LOAN
Air cargo carrier Atlas Air Inc. obtained a waiver from Deutsche Bank allowing it extra time to file quarterly reports with the U.S. Securities and Exchange Commission, and preventing it from technically defaulting on the terms of a loan, Atlas Air spokesperson Rachel Berry said Thursday.
Atlas Air, which operates 40 B747 jumbo jet freighters, did not file financial reports for the third and fourth quarters of 2002 because it is in the process of auditing and restating earnings from several previous quarters. The company discovered potential errors in its financial statements last year after it dropped its auditor, Arthur Andersen, which became embroiled in the Enron collapse and other financial scandals. Atlas switched to Ernst & Young, Berry said.
Atlas hopes to complete the re-audit by March 31 and would not project how much earnings would change until then, she said.
Deutsche Bank also extended a loan payment deadline from early January to the end of the month, and capped it at $10 million, Berry said.
Parent company Atlas Air Worldwide Holdings also owns Polar Air Cargo, which is not affected by the loan agreement or the restatement of earnings.