SF Gate: Discount airline says it has another offer for assets

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Friday, October 4, 2002 (AP)
Discount airline says it has another offer for assets



   (10-04) 07:06 PDT KANSAS CITY, Mo. (AP) --
   Vanguard Airlines, the discount carrier that rejected a bid from a group
headed by the chairman of the Hooters restaurant chain to buy it out of
bankruptcy, says it has another offer from an unidentified bidder.
   Scott Dickson, the airline's chairman and CEO, said Thursday that there
was a new offer but declined to say who it was from or to give any details
abouty it.
   Dickson also said there might be still another new offer coming, but
wouldn't comment further.
   He said the company has to convene its board and work through the
bankruptcy court and the creditors' committee in its Chapter 11 case, but
added, "things are looking up, definitely."
   A buyout proposal from the group headed by Robert H. Brooks, chairman of
Hooters of America Inc., was turned down last week, with Vanguard
describing it as inadequate. Terms of that offer were never disclosed
publicly.
   Vanguard earlier had set Thursday as the deadline for other proposals to
buy its assets. The carrier has let go its leases at Kansas City
International Airport and has just one remaining leased plane.
   By retaining that single plane Vanguard is able to keep its operating
certificate, which is its key asset.
   After years of losses, Vanguard shut down and filed for Chapter 11
bankruptcy protection on July 31, laying off more than 1,000 employees and
stranding about 6,500 customers.
   For several weeks Brooks provided more than $350,000 to allow Vanguard to
maintain a skeleton staff while he evaluated a possible acquisition. But
last week Vanguard's board and the creditors committee deemed the bid
insufficient.
   Vanguard has only six remaining employees, and it is proceeding with pla=
ns
to liquidate surplus equipment valued at more than $4 million.

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Copyright 2002 AP

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