Citicorp USA Inc. and Salomon Smith Barney Inc. terminated their financing commitment to Amtran Inc.’s proposed going-private transaction.
Citicorp USA and Salomon Smith Barney–both units of Citigroup Inc.–and Bank One Corp. had committed to provide a $175 million secured revolving-credit facility to be used to finance the deal.
In June, Amtran accepted an offer from founder, chairman and majority holder J. George Mikelsons to take the company private for $23 a share in cash.
On Friday, Amtran shares closed at $8.18, up 3 cents or 0.4 percent, on Nasdaq volume of 38,000 shares. On Sept. 10, the day before the terrorist attacks, the company’s shares closed at $22.55.
Amtran, parent company of American Trans Air Inc., said it received the notice in letter from Citicorp USA and Salomon Smith Barney on Friday.