Mesa Air Group Chapter 11 Info
#1241
This is just the reorganization plan. There are many more hurdles to jump before the final decree (objections, acceptance, discharge, modifications, etc.).
A few things to consider:
This plan places six creditor selected directors on the nine member MAG BOD and allows US Airways at least a 10% stake on top of what influence they may already possess. The current MAG management will not have the absolute power they once enjoyed. If this plan or anything like it is approved, then the reorganized MAG will be a very different company.
Then, on top of all that, there still exists the possibility of a post-restructure merger/acquisition scenario.
Stay tuned and good luck,
winglet
Last edited by winglet; 09-21-2010 at 10:23 PM.
#1244
Gets Weekends Off
Joined APC: Feb 2007
Position: B777
Posts: 121
glad to see the board will be comprised of folks who's main interest isn't being JO's cronies
so instead of jo giving usair 100 million (was it in 2005?) for the 900 flying and stock in usair, he winds up giving them shares in mesa
savy
so instead of jo giving usair 100 million (was it in 2005?) for the 900 flying and stock in usair, he winds up giving them shares in mesa
savy
#1245
Go Knights Go
Joined APC: Apr 2008
Position: OCC/Dispatch
Posts: 261
pilotrob23,
This is just the reorganization plan. There are many more hurdles to jump before the final decree (objections, acceptance, discharge, modifications, etc.).
A few things to consider:
This plan places six creditor selected directors on the nine member MAG BOD and allows US Airways at least a 10% stake on top of what influence they may already possess. The current MAG management will not have the absolute power they once enjoyed. If this plan or anything like it is approved, then the reorganized MAG will be a very different company.
Then, on top of all that, there still exists the possibility of a post-restructure merger/acquisition scenario.
Stay tuned and good luck,
winglet
This is just the reorganization plan. There are many more hurdles to jump before the final decree (objections, acceptance, discharge, modifications, etc.).
A few things to consider:
This plan places six creditor selected directors on the nine member MAG BOD and allows US Airways at least a 10% stake on top of what influence they may already possess. The current MAG management will not have the absolute power they once enjoyed. If this plan or anything like it is approved, then the reorganized MAG will be a very different company.
Then, on top of all that, there still exists the possibility of a post-restructure merger/acquisition scenario.
Stay tuned and good luck,
winglet
I have heard the proposed plan sets Mesa up to be sold. There may be truth to that if the creditors agreed on this plan as it was written.
What is your take on this?
#1246
New Hire
Joined APC: Jan 2010
Posts: 6
Skywest buys Mesa out of B/K and gets the contract flying with Airways till 2015- JO gets his stock (per POR) probably his golden parachute- Mesa's flying continues as is sans interruption- Airways makes money selling their ownership in Mesa (per POR) to Skywest - this scenario would explain the creditors committee going along with this POR and it's giving money to someone like JO- its the best way for the creditors to recuperate the largest amount of money.
#1247
It is plausible. If this plan is accepted, MAG will be a profitable company with a desirable fleet type and a structured plan to pay off debts. The BOD will consist of a majority of directors appointed by the creditors. The creditors and US Airways will also receive the majority of the new issue stock. MAG management, with 10% of the new issue stock, will be in a weak position to prevent a possible M/A.
winglet
p.s. Did you see the big reveal of Nilchii, Inc. in the disclosure statement? Apparently MAG loaned Spirit $15 million in 2006 resulting in a valuation of the investment at $61.4 to $95.6 million.
Hint: Indigo Partners, Oaktree Capital Investment, and William A. Franke .
Last edited by winglet; 09-22-2010 at 07:24 AM.
#1248
Releasemaster,
It is plausible. If this plan is accepted, MAG will be a profitable company with a desirable fleet type and a structured plan to pay off debts. The BOD will consist of a majority of directors appointed by the creditors. The creditors and US Airways will also receive the majority of the new issue stock. MAG management, with 10% of the new issue stock, will be in a weak position to prevent a possible M/A.
winglet
p.s. Did you see the big reveal of Nilchii, Inc. in the disclosure statement? Apparently MAG loaned Spirit $15 million in 2006 resulting in a valuation of the investment at $61.4 to $95.6 million.
Hint: Indigo Partners, Oaktree Capital Investment, and William A. Franke .
It is plausible. If this plan is accepted, MAG will be a profitable company with a desirable fleet type and a structured plan to pay off debts. The BOD will consist of a majority of directors appointed by the creditors. The creditors and US Airways will also receive the majority of the new issue stock. MAG management, with 10% of the new issue stock, will be in a weak position to prevent a possible M/A.
winglet
p.s. Did you see the big reveal of Nilchii, Inc. in the disclosure statement? Apparently MAG loaned Spirit $15 million in 2006 resulting in a valuation of the investment at $61.4 to $95.6 million.
Hint: Indigo Partners, Oaktree Capital Investment, and William A. Franke .
SKW INC will probably not touch mesa with only four years on the airways contract. They have historically been very leery about acquiring hardware with any significant tail risk. It's remotely possible that the street value of the 900's would be enough to make it worthwhile...I'm not sure how beat up those units are today.
#1250
Go Knights Go
Joined APC: Apr 2008
Position: OCC/Dispatch
Posts: 261
Please note the approval of the part giving 10% to LCC may be the lynch pin in making the extension a done deal.
Thread
Thread Starter
Forum
Replies
Last Post