need help with a loft....

Please see the attached SW file....how can I cut-out the areas between sketches 5 and 6?  I thought a loft was the best way to go, but it keeps telling me that I have "intersecting geometry."  I'm guessing that's because both of the sketches share the same line in space on one side, but how do I get around this conundrum??SolidworksParts And Features