NYTimes.com Article: Judge Backs Southwest's Deal to Buy ATA's Gates at Midway

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Judge Backs Southwest's Deal to Buy ATA's Gates at Midway

December 22, 2004
 By THE ASSOCIATED PRESS





INDIANAPOLIS, Dec. 21 (AP) - A federal judge on Tuesday
approved Southwest Airlines' $117 million deal with ATA
Airlines, a package that gives ATA an infusion of capital
as it emerges from bankruptcy protection.

The deal was approved by Judge Basil Lorch III in
bankruptcy court in Indianapolis, where ATA is based. The
arrangement increases Southwest's dominance at Midway
International Airport in Chicago, where it is the largest
carrier. By adding 6 of ATA's 14 Midway gates to its
current 19, Southwest will increase its capacity at Midway
by nearly a third.

ATA Holdings announced last week that it had accepted
Southwest's bid for its airline's gates, over a rival offer
of $89 million for all of ATA's gates at Midway by AirTran
Airways, which is based in Orlando, Fla.

Southwest agreed to pay about $87 million for the ATA gates
and to acquire ATA's aircraft maintenance center at the
Chicago airport. That total includes $40 million in cash
and $47 million in financing.

Southwest, based in Dallas, would also invest $30 million
in notes it could exchange later for about 27 percent of
ATA stock once ATA emerges from bankruptcy. The shares
would be nonvoting stock.

"The court's approval confirms that our arrangement with
Southwest is the optimal outcome for ATA, our employees,
customers, the city of Chicago and our stakeholders," J.
George Mikelsons, ATA Holdings chairman and chief
executive, said in a statement.

http://www.nytimes.com/2004/12/22/business/22air.html?ex=1104725429&ei=1&en=5120e340bae906b6


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