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The Air Transportation Stabilization Board (ATSB) announced today that World Airways has fully repaid the remaining balance of its ATSB-guaranteed loan of $30 million, which was made on December 30, 2003. The loan was backed by a $27 million guarantee issued under the Air Transportation Safety and System Stabilization Act. The remaining balance on the loan at the time it was paid off was $24 million; the guaranteed portion was $21.6 million.
The ATSB now has no outstanding loan guarantees. The Board has a direct loan of $86 million to ATA Airlines as a result of the airline's bankruptcy. During ATA's bankruptcy, the ATSB's loan guarantee was called by the lenders and paid by the Board. The ATSB's resulting secured claim was reinstated as a direct loan on the company's exit from bankruptcy last month. In addition, the Board is continuing to explore the sale of its remaining warrants in Frontier Airlines and World Airways.
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