Vanguard Airlines plans to file for Chapter 11 Tuesday July 30, 8:08 AM EDT (Recasts lead, adds details about government loan guarantees) NEW YORK, July 30 (Reuters) - Vanguard Airlines Inc. (VNGD) on Tuesday said it plans to file for Chapter 11 bankruptcy and has suspended operations, after being denied government loan guarantees to alleviate financial hardships stemming from the Sept. 11 attacks. The Kansas City-based airline announced its intention to file for bankruptcy through a company recording on its reservation hotline. The recording said the company has canceled all flights through Wednesday and is suspending all flights thereafter indefinitely. Vanguard also said it is seeking funds in order to continue operations. ++++and there is the rest of the story that was not in the previous post++++ In May, a federal board set up to oversee government loan guarantees to airlines hit hard by the Sept. 11 attacks rejected a $15 million request from Vanguard, saying the company could not assure the government it could repay the loan. Vanguard filed a revised and increased application to the Air Transportation and Stabilization Board in late June, asking the government to back $35 million of a $40 million loan. A company spokesman was not available for comment.