Expected MESA shutdown?

[SoberIrishman]

Anyone got an estimated date of the demise of MESA? Currently JO seems to have more lives than OJ.

 

[79%N1]

They won't shut down.........

 

[SoberIrishman]

But what happens if they can't pay the bondholders? Do they have the market cap to continue borrowing? How can they continue to issue shares ad-infinitum?
No equity=no working capital.

 

[Lampshade]

I believe Mesa is down to it last 15-20 mil before it "has" to file. But if the bond holders give him a pass and they work something out with Delta they can limp along for a while.

 

[Salukipilot4590]

Here's a better question....

What will actually happen if they DO go T-U?

 

[SoberIrishman]

Let's hope it works out for all. MESA bashing aside, there are livelihoods at stake.

 

[T/SF34/A]

JO must be printing his own "bail out" $$$

 

[SoberIrishman]

The vultures will descend and pick up the pieces, hopefully at a higher level of remuneration for services by holding the majors feet to the fire more than MESA could. There will be a severe depletion of connecting service capacity due to the fact that MESA is so large, and a lot of RJs listed on the aviation equivalent of Ebay!

 

[Flyerdan]

I see this discussion over and over again and I always wonder why people think Mesa would just shut down and liquidate without first going into bankruptcy. Isn't it more likely that Mesa would go into bankruptcy, restructure, and then continue as a somewhat smaller company?

 

[crj567]

Maybe J.O. will get busted in 'Vegas, just trying to get his "property" back by means of armed robbery!

-Wouldn't that be awesome!?!

 

[Metro752]

If Mesa goes into bankruptcy they lose Delta flying. United, and US Airways may also terminate their agreements with Mesa if they go into bankruptcy.

 

[Flyerdan]

If Mesa goes into bankruptcy they lose Delta flying. United, and US Airways may also terminate their agreements with Mesa if they go into bankruptcy.

Why is that? Wouldn't a bankruptcy court try to shield them from that happening?

 

[Raoul Duke]

Bankruptcy would not affect their agreements, they would file and immediately affirm those contracts and reject all 50 seat aircraft. If anything their filing BK would make them more attractive to Airways, United and Delta because they could use bk the same way as the majors to come out with the absolutely lowest costs operation. Be careful what you wish for, the unintended consequences may be much worse that the status quo.

 

[Metro752]

Use the search function on this message board. This has been discussed a million times, and the contracts are posted somewhere.

 

[yourhairsonfire]

Anyone got an estimated date of the demise of MESA? Currently JO seems to have more lives than OJ.

Don't forget...OJ (#32) ran out of lives...he's in prison...