Air Atlanta Files For Bankruptcy Protection
Apr. 04, 1987
ATLANTA (AP) _ Air Atlanta, a three-year-old carrier catering to business travelers, on Friday filed for protection from its creditors under Chapter 11 of the U.S. bankruptcy laws.
''The money just ran out,'' Executive Vice President David H. Kolber said Friday.
The airline has sustained losses estimated at nearly $40 million since its debut in 1984.
Kolber said some Air Atlanta flights might continue this weekend, but at least some of its planes were scheduled to be grounded Friday.
The company filed in U.S. Bankruptcy Court in Atlanta under Chapter 11 of the bankruptcy code, which protects companies' assets from creditors while the companies reorganize.