Atlas Air restructuring could include bankruptcy plan

Atlas Air restructuring could include bankruptcy plan

      Atlas Air Worldwide Holdings said lenders that helped its Atlas Air all-cargo subsidiary finance its first 12 Boeing 747-400 freighters in 1998-2000 have agreed to a 60-day delay for a full payment while the parties try to restructure the deal.

   In exchange, Atlas paid $25 million, or 50 percent, of the amount originally due.

   The lenders also agreed to allow Atlas an extra 30 days to complete the payment if a deal is reached in principle before the 60-day extension expires. The payment was originally due July 2

   Atlas said it also reached an agreement in principle with Deutsche Bank on a comprehensive financial restructuring program as the company tries to stave off bankruptcy proceedings.

   'The company is considering various alternative methods to implement its restructuring program, including the filing of a pre-negotiated Chapter 11 plan of reorganization, with the goal of emerging from Chapter 11 as quickly as possible with minimum disruption to its business,' the company said. It is the first time since the troubled airline has acknowledged that it may be forced to seek bankruptcy protection.

   Atlas Air, which provides charter service and airlift to cargo airlines, has deferred payments on aircraft leases this year. The Purchase, N.Y.-based company said negotiations with its remaining secured creditors and lessors continue.