Releasemaster

Update: This evening several of the big players in this case filed billing statements and request for payment from Mesa.

Winglet, do you have any insight?

winglet

Releasemaster,

These are the interim compensation applications. They are nothing unusual. Under Bankruptcy Code professionals hired during the bankruptcy process have to apply to the court for compensation approval. There will be periodic applications throughout the bankruptcy. The applications are often submitted "nunc pro tunc" (retroactively) as to not divulge too much information, esp. during litigation.

What is most interesting about these applications is that they contain detailed time records that reveal the focus of the lawyers and give some insight into the behind-the-scenes activity. For example; as one can imagine, there has been a lot of activity concerning "analysis of historical and future payment rates on CRJ 7/9 aircraft" under "Code-Share Assumptions, Extensions" and "preparation of extension discussion materials" under "fleet and debt restructuring", etc.

winglet

Releasemaster

Thanks Winglet. I guess what caught my attention where so many parties filing for payment at the same time. Was it planed this way?

winglet

Releasemaster,

It suggests that, for better or worse, things are slowly wrapping up.

One counsel for MAG states in their application that as of May 31, MAG had $60.8 million unencumbered cash on hand or deposit and that MAG is currently in the process of formulating a POR. They state that MAG "anticipates" filing a POR and disclosure statement in July.

They also state that the "operational transition into Chapter 11 has been unusually smooth" and that MAG has "established a harmonious relationship" with the Creditors Committee.

Another counsel states that it has "undertaken discussions with other parties that may be interested in investing in or acquiring the Debtors".

Expect news soon...

winglet

winglet

Update:

MAG has filed a fourteen page Chapter 11 status report reviewing the proceedings to date (docket #885). It confirms the United litigation settlement, the transfer of the DAL MFN litigation to the bankruptcy court, the contract extension negotiations with USAirways, amongst other details. This report is an excellent review for those not able to follow the proceedings.

winglet

Rock752000

Disregard... found the link. Page 1.

lolwut

What is going to happen to the Freedom certificate after Sept 6th when the flying stops? Will they just surrender it back to the feds?

Rock752000

Irony thought: 400 (soon to be more) said NO, 400 on FUR... just came to me.

winglet

Update:

MAG has been granted approval by the bankruptcy court to proceed with "omnibus claim rejections". This means they can legally lump together certain creditor claims and collectively reject them. The rejected claims have to meet defined criteria for the court to approve the omnibus rejection. This approval is somewhat standard in Chapter 11 cases and demonstrates a "normal" progression of the case.

winglet

theHub

We're hearing that Mesa might have struck a deal with LCC to extend the current contract 5 years and emerge from Ch 11 as long as they purchase Piedmont. Anybody?