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Article: Government Rejects Vanguard Airlines' Loan Guarantee Application.
- Article from:
- Knight Ridder/Tribune Business News
- Article date:
- May 29, 2002
CopyrightCOPYRIGHT 2002 Knight-Ridder/Tribune Business News. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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By Randolph Heaster, The Kansas City Star, Mo. Knight Ridder/Tribune Business News
May 29--Vanguard Airlines Inc. suffered a blow to its financial restructuring efforts Tuesday when the federal government rejected the company's long-sought loan guarantee application.
The Air Transportation Stabilization Board decided not to guarantee $13.5 million of a $15 million loan from a German bank to Vanguard as part of a financial restructuring the company has been attempting.
In a statement released Tuesday, the stabilization board said it "determined that Vanguard's proposal did not provide reasonable assurance that Vanguard will be able to repay the ...