May 31, 2006
JS-4297

Air Transportation Stabilization Board Announces sale of Frontier Warrants

The Air Transportation Stabilization Board today announced the sale of the 3,450,551 warrants that it received in connection with the issuance of a loan guarantee to Frontier Airlines. The warrants were purchased in an auction by seven institutional investors at a price of $2.03 per warrant. Total net proceeds to the government were $6,608,604.

The ATSB still holds warrants in World Airways. The ATSB currently has no outstanding loan guarantees, but the Board has a direct loan of $86 million to ATA Airlines as a result of the airline's bankruptcy.

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