INDIANAPOLIS – ATA Airlines Inc., the nation’s 10th-largest airline, filed for bankruptcy protection Tuesday, one day after naming an executive to oversee the restructuring of the discount carrier’s mounting debt.
The filing under Chapter 11 of the federal bankruptcy code came as the Indianapolis-based airline, whose parent company is ATA Holdings Corp., faces soaring fuel costs, an industry fare war and sharply lower demand for military charter flights.
ATA also is saddled with millions of dollars in debt from new aircraft purchases.
The value of the firm plummeted 36 percent Tuesday, its stock closing down at 93 cents a share, down 53 cents, on the Nasdaq stock exchange. The stock had hit a 52-week high of $13.31 on Feb. 2.
In its filing, the company seeks bankruptcy protection for eight different corporate entities from more than 1,000 creditors. The filing listed total assets of about $745.1 million and total debts of $940.5 million.
ATA, which was founded in 1973 in Indianapolis as American Trans Air, currently has 7,900 employees, including 2,500 in Indianapolis.
In recent weeks the company has announced plans to cut more than 300 jobs, including 150 flight attendants. So far this year, ATA pilots and flight attendants have accepted nearly $70 million in wage concessions.
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