Mesa Air Group Chapter 11 Info
02-03-2010, 09:12 PM
#331
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Joined APC: Jun 2008
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BTW Winglet, I don't disagree with your reply to my last post regarding the emergancy motion to reup the LoC. That motion has been granted and the court will hear the case tommorow. Mesa should get approval on that, IMO. However when MAG entered BK JO said the company had enough money to get by, but now a month later is asking the court for approval to get financing. If JO's remarks or the like are in court documents then they would be most likely under oath. Again I don't think that will keep the motion from being approved but it might bring more scrutiny from the court and creditors.
Mesa claims that DIP financing is unnecessary and that they will use their own capital. To accomplish this Mesa has to bring in enough revenue from it's remaining contracts to at least finance the day-to-day operations sans the unused aircraft leases. The hearing tomorrow concerning the LOC is probably concerning a request to replace an expiring LOC.
Yesterday, the Judge signed these orders:
"Order signed on 2/3/2010 Granting Motion to Authorize Debtors to Continue and Renew Letter of Credit and Surety Bond Programs."
"Amended Interim Order Signed on 2/3/2010 Authorizing Debtors to (I) Continue Using Existing Cash Management Systems (II) Maintain Existing Bank Accounts and Business Forms and (III) Granting Related Relief."
winglet
Last edited by winglet; 02-03-2010 at 10:19 PM.
02-03-2010, 11:31 PM
#332
Go Knights Go
Joined APC: Apr 2008
Position: OCC/Dispatch
Posts: 261
Releasemaster,
Mesa claims that DIP financing is unnecessary and that they will use their own capital. To accomplish this Mesa has to bring in enough revenue from it's remaining contracts to at least finance the day-to-day operations sans the unused aircraft leases. The hearing tomorrow concerning the LOC is probably concerning a request to replace an expiring LOC.
Yesterday, the Judge signed these orders:
"Order signed on 2/3/2010 Granting Motion to Authorize Debtors to Continue and Renew Letter of Credit and Surety Bond Programs."
"Amended Interim Order Signed on 2/3/2010 Authorizing Debtors to (I) Continue Using Existing Cash Management Systems (II) Maintain Existing Bank Accounts and Business Forms and (III) Granting Related Relief."
winglet
Mesa claims that DIP financing is unnecessary and that they will use their own capital. To accomplish this Mesa has to bring in enough revenue from it's remaining contracts to at least finance the day-to-day operations sans the unused aircraft leases. The hearing tomorrow concerning the LOC is probably concerning a request to replace an expiring LOC.
Yesterday, the Judge signed these orders:
"Order signed on 2/3/2010 Granting Motion to Authorize Debtors to Continue and Renew Letter of Credit and Surety Bond Programs."
"Amended Interim Order Signed on 2/3/2010 Authorizing Debtors to (I) Continue Using Existing Cash Management Systems (II) Maintain Existing Bank Accounts and Business Forms and (III) Granting Related Relief."
winglet
You are correct that this particular hearing regards MAG obtaining approval to reup existing LoC's. The signficance I see in it is what was stated in the motion which IIRC was MAG's need to reup these specific LoC's to fund operations and employee compensation. Again I don't think MAG will have a problem getting approval, it just stands out to me that what was said contradicts what is being asked, in my mind.
02-04-2010, 04:47 AM
#333
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Joined APC: Apr 2007
Position: NOYDB
Posts: 876
The Mesa/Delta trial concerning the Freedom contract will be transferred from the Atlanta district court to the New York bankruptcy court. The trial scheduled for July 12, 2010 in Manhattan.
"U.S. Bankruptcy Judge Martin Glenn said today in New York that his bankruptcy court will decide whether the Mesa and Delta codeshare agreement will continue." Bloomberg
Bloomberg Article
winglet
"U.S. Bankruptcy Judge Martin Glenn said today in New York that his bankruptcy court will decide whether the Mesa and Delta codeshare agreement will continue." Bloomberg
Bloomberg Article
winglet
02-04-2010, 04:58 AM
#334
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Joined APC: Apr 2007
Position: NOYDB
Posts: 876
rickair7777,
Do you mean like the federal district court in Atlanta that awarded Mesa a preliminary court injunction to block the contract termination?
Or the 11th U.S. Circuit Court of Appeals who affirmed that decision after Delta appealed?
"The evidence showed that Delta induced Mesa to agree to Delta's coordinated cancellations by promising not to count such cancellations against it and then, having benefited from Mesa's willingness to extend Delta this courtesy, attempted to cancel the parties' contract on the theory that this promise was invalid as a matter of law. In light of this evidence, the district court did not abuse its discretion when it granted Mesa's motion for a preliminary injunction." 11th U.S. Circuit Court of Appeals, July 2009
winglet
Do you mean like the federal district court in Atlanta that awarded Mesa a preliminary court injunction to block the contract termination?
Or the 11th U.S. Circuit Court of Appeals who affirmed that decision after Delta appealed?
"The evidence showed that Delta induced Mesa to agree to Delta's coordinated cancellations by promising not to count such cancellations against it and then, having benefited from Mesa's willingness to extend Delta this courtesy, attempted to cancel the parties' contract on the theory that this promise was invalid as a matter of law. In light of this evidence, the district court did not abuse its discretion when it granted Mesa's motion for a preliminary injunction." 11th U.S. Circuit Court of Appeals, July 2009
winglet
02-04-2010, 05:26 AM
#335
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Joined APC: Jul 2008
Position: CL-65 CA
Posts: 246
JO and company can spin anything in their favor. I've seen it many times first hand...and they're goood at it! There was aslo evidence that was made unavailable to Delta before the injuntion hearing(stolen lap top, missing e-mails, and two individuals being made unavailable); which Delta was about to submit at the next hearing. They should be able to produce this to Judge Glenn as long as MAG allows Bjorn and Seratelli to be made available.
02-04-2010, 05:28 AM
#336
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Joined APC: Jun 2008
Posts: 467
Winglet,
You are correct that this particular hearing regards MAG obtaining approval to reup existing LoC's. The signficance I see in it is what was stated in the motion which IIRC was MAG's need to reup these specific LoC's to fund operations and employee compensation. Again I don't think MAG will have a problem getting approval, it just stands out to me that what was said contradicts what is being asked, in my mind.
You are correct that this particular hearing regards MAG obtaining approval to reup existing LoC's. The signficance I see in it is what was stated in the motion which IIRC was MAG's need to reup these specific LoC's to fund operations and employee compensation. Again I don't think MAG will have a problem getting approval, it just stands out to me that what was said contradicts what is being asked, in my mind.
I agree. Mesa has to be up front during this entire process. That is quite the test for this team. The first hint of any attempt at misrepresentation and the court will not be so accommodating. (e.g. There cannot be a sudden discovery of clean hard drives due to porn deletion, etc.
).winglet
02-04-2010, 05:32 AM
#337
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Joined APC: Jun 2008
Posts: 467
Exactly! I'm sure Judge Glenn knows what he's doing, just as Judge Cudahy knew what he was doing. It's not like we're observing a battle between the naive and the innocent
.winglet
Last edited by winglet; 02-04-2010 at 06:20 AM.
02-04-2010, 06:59 AM
#338
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Joined APC: Jan 2006
Position: Engines Turn Or People Swim
Posts: 40,044
rickair7777,
Do you mean like the federal district court in Atlanta that awarded Mesa a preliminary court injunction to block the contract termination?
Or the 11th U.S. Circuit Court of Appeals who affirmed that decision after Delta appealed?
"The evidence showed that Delta induced Mesa to agree to Delta's coordinated cancellations by promising not to count such cancellations against it and then, having benefited from Mesa's willingness to extend Delta this courtesy, attempted to cancel the parties' contract on the theory that this promise was invalid as a matter of law. In light of this evidence, the district court did not abuse its discretion when it granted Mesa's motion for a preliminary injunction." 11th U.S. Circuit Court of Appeals, July 2009
winglet
Do you mean like the federal district court in Atlanta that awarded Mesa a preliminary court injunction to block the contract termination?
Or the 11th U.S. Circuit Court of Appeals who affirmed that decision after Delta appealed?
"The evidence showed that Delta induced Mesa to agree to Delta's coordinated cancellations by promising not to count such cancellations against it and then, having benefited from Mesa's willingness to extend Delta this courtesy, attempted to cancel the parties' contract on the theory that this promise was invalid as a matter of law. In light of this evidence, the district court did not abuse its discretion when it granted Mesa's motion for a preliminary injunction." 11th U.S. Circuit Court of Appeals, July 2009
winglet
I have to admit I'm surprised that OJ and buddies have come up with a possibly viable exit strategy...the key is to not require financing, cuz they are not going to get any.
Last edited by rickair7777; 02-04-2010 at 08:10 AM.
02-04-2010, 07:54 AM
#339
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Joined APC: Apr 2007
Position: NOYDB
Posts: 876
I never said Delta's management was in the right. All I stated was that there was evidence that was not considered for the deliberation on the injunction. It might have changed the outcome or maybe not. All parties will get to air their grievences and submit their evidence before Judge Glenn and he'll make a ruling on whether MAG continues to fly for DCI or not.
02-04-2010, 08:24 AM
#340
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Joined APC: Jan 2008
Posts: 510
just a note, DIP assume a superior position on assets. read, they ace out the other creditors. that is not what mag intends to do. they are saying that they are sufficiently funded using LoC's like any other going concern and do not need the nuclear option that harms other creditors. this is not a contradiction.
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