Wednesday, October 29, 2003

World Airways looking to get $27 million loan

Peachtree City’s World Airways announced the exchange offer for its outstanding 8 percent loan due 2004 expired earlier this month. The exchange offer was subject to various conditions, including the tender of at least $38.5 million principal amount of existing loans, representing approximately 95 percent of the outstanding existing loans.

At the expiration of the exchange offer, $7.2 million aggregate principal amount of existing loans, representing 17.7 percent of the existing loans outstanding, had been tendered. All existing loans tendered pursuant to the exchange offer will be promptly returned to their holders.

The restructuring of the existing loans remains a condition to the final approval by the Air Transportation Stabilization Board of a federal loan guarantee of $27 million in support of a $30 million new term loan facility the Company is seeking from commercial lenders. The company said that it continues to pursue the ATSB-backed loan guarantee.Ê Although the company’s major loan holders indicated in earlier discussions that they would not tender their loans under the existing terms, World Airways said that it will continue to explore all available alternatives, and is continuing discussions with major holders of loans regarding a possible transaction that would be acceptable to them and also satisfy the ATSB requirements.Ê

“We’ve made tremendous progress this year, and our forecast for the third quarter and full year is strong,” said Hollis Harris, World Airways chairman and CEO. “The federal loan guarantee is an important step in the effort to improve our balance sheet and support our future growth plans.ÊWe are absolutely committed to finding ways to come to an agreement with our major debenture holders and to securing approval of the federal loan guarantee.”

Utilizing a well-maintained fleet of international range, wide-body aircraft, World Airways, Inc. has an enviable record of safety, reliability and customer service spanning more than 55 years.ÊThe company is a U.S. certificated air carrier providing customized transportation services for major international passenger and cargo carriers, the United States military and international leisure tour operators. Recognized for its modern aircraft, flexibility and ability to provide superior service, World Airways, Inc. meets the needs of businesses and governments around the globe.

For more information, visit the Company’s Web site at www.worldair.com.

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