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The security firm that screens passengers at Atlanta’s Hartsfield International Airport has secured operating funds through Dec. 14, provided it presents a detailed plan to a New York bankruptcy judge on Monday to sell the company. “The funding is conditional on the company seeking buyers,” says Lawrence A. Larose, a partner with King & Spalding in New York who represents the security company, Cleveland-based International Total Services Inc. Larose says two banks have agreed to make available a $28 million credit line to cover ITS’ payroll and operating expenses. But the banks can terminate that credit line if ITS fails to file “with the court one of two things: an order seeking approval of a contract for sale of some or all of the business or an order seeking approval to conduct an auction of some or all of the business,” says Larose. ITS provides security at 113 U.S. airports, including all three metropolitan New York airports and Ronald Reagan National Airport in Washington, D.C. The company sought Chapter 11 creditor protection on Sept. 13, two days after the airline terrorist attacks that destroyed the World Trade Center. ITS sale plans must be presented to U.S. Bankruptcy Judge Conrad B. Duberstein of the Eastern District of New York on Monday unless the lender banks agree to waive that condition or extend ITS additional time, Larose says. Larose says the plan does not mean ITS must be sold by Monday. It must only assure ITS lenders that the company is actively seeking bids and has a deadline for the sale and a procedure for qualifying potential buyers. “It is not unusual for debtor-in-possession financing to have conditions,” Larose says. “Some have a plan of reorganization by a certain date. In this case, the creditors believe the sale of some or part of ITS is actually the most efficient course.” Hartsfield officials say ITS’ financial problems don’t affect the company’s ability to provide security services.

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