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Did Mesa get the votes?

OK Bud!

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Anyone know the status of JO's bid to issue 900,000,000 more shares of stock? The vote was today and I can't find any info.
Disclaimer: We all know Mesa sucks. I am looking for some actual news.
 

CX880

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"Working as hard as we had, we tend to relax," the 53-yr-old captain told NTSB investigators in a recently released factual report on the incident by the agency. "We had gotten back on schedule [after a 30min departure delay due to a flight attendant scheduling issue], it was comfortable in the cockpit, the pressure was behind us. The warm Hawaiian sun was blaring in as we went eastbound. I just kind of closed my eyes for a minute, enjoying the warm sunshine, and dozed off."

http://www.flightglobal.com/article...-pilot-napped-regularly-in-mesa-cockpits.html
 

Rominato

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Bueller?

Anyone?

Frankly I'm surprised we haven't heard anythign yet. If they got the approval, you'd think it would be announced right away. Maybe they didn't get it and are scrambling?

Who knows.
 

zawillif

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I've been monitoring Yahoo finance news all day and haven't seen a thing. It's very surprising, you figure there would be a report either way. The stock has been down at times today but currently trading at yesterday's closing price of $.28.
 

Andy Neill

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Lynn, who fielded my Investor Relations question, said the additional shares measure passed and that a press release was issued this afternoon.
 

Rominato

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So...

Lynn, who fielded my Investor Relations question, said the additional shares measure passed and that a press release was issued this afternoon.


So, who wants to lay out exactly what this means for Mesa? They issue hundreds of millions of new shares to raise cash to cover debts outstanding? Is that right? What happens to their share price with ths issuance of so much new stock? When does this take place? Does this mean that those bonds coming due at the end of the month are now not a concern?
 

Andy Neill

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There has been absolutely no activity after hours and the price remains at $0.28 per share. Mesa's Book Value per share is $5.27 including $1.75 in cash as of the most recent quarter. They are bleeding heavily.

Additional shares, especially 900 million, should dilute the book value significantly since there are fewer than 28 million shares held now. The book value would be just under $0.16 per share.
 

Raoul Duke

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This gives them leverage against the bond holders to force them to negotiate or get worthless stock. Even if the stock is issued they can fix the share price problem with a reverse split.
 

Rominato

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so...

This gives them leverage against the bond holders to force them to negotiate or get worthless stock. Even if the stock is issued they can fix the share price problem with a reverse split.


So, basically, based on what you're saying, is Mesa home free again? No more turbulent times on the foreseeable horizon?
 

DoinTime

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So, basically, based on what you're saying, is Mesa home free again? No more turbulent times on the foreseeable horizon?

Home free with at least 4 more years of the worst pilot contract by far in the industry. Great job Mesa pilots!

Seeing is that nobody has covered it yet.....MESA SUCKS!!!
 

ePilot22

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So does this mean MESA is going to pay the bondholders with these additional shares or the public is supposed to buy the shares and MESA will pay the debt with cash?

I'm having a hard time believing that they can sell these additional shares, but I could see a bondholder accepting the shares instead of cash i.e. something is better than nothing.

Can someone explain what these additional share mean and how it helps MESA's financial position.

Thanks.









eP.
 

zawillif

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It's comforting to know that if we go to nuclear war with Iran or China Mesa will still be around to fly the cockroaches where ever they want to go.
 

ePilot22

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Ok. So 30 minutes later, I've found my answer:

MESA is authorized to pay the bondholders with these newly issued shares. Based on MESA's SEC filing on Nov. 24th the need for 900M shares would happen if the stock fell to $.10/share.

The below table illustrates the effect of the market price for the Company's Common Stock, and the resulting amount of Common Stock that the Company must issue, if all Forbearing Holders and the holders of the 2024 Notes require the Company to repurchase all of their Senior Notes, and if the Company elects to satisfy its Note Repurchase Obligations solely by issuing shares of Common Stock

Market Price

$0.25

Maximum Note Repurchase Obligation

$94,500,000

Number of Shares of Common Stock that the Company Must Issue

378,000,000

The Company wishes to retain the flexibility to use all cash, all stock or a combination thereof to satisfy its Note Repurchase Obligations in the event that the Forbearing Holders and the holders of 2024 Notes exercise their Forbearing Put Rights and 2009 Put
Roughly as it is now they'll need to issue 378M shares (little less) to pay the bondholders.

Sucks for them!







eP.
 

DoinTime

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The problem is that you can't just print money like this. Issuing more shares just dilutes the stock price while at the same time reallocates who owns that equity. So what JO is essentially doing is stealing money from his shareholders to pay off the company debt. Just like the Mesa pilots wouldn't stand up to JO neither will the shareholders.

JO will walk out of this mess both a hero and a king in the buisness world. Meanwhile everyone who makes the company what it is gets screwed by their own cowardly refusal to stand up for themselves.
 

~~~^~~~

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Here's the Press Release:

NEW YORK, Jan 7 (Reuters) - Struggling U.S. airline Mesa Air Group Inc (MESA.O) said on Wednesday its shareholders approved a plan to increase the number of company shares by 1,100 percent and issue new stock.

The move would allow the regional carrier to buy back its bonds from investors if necessary.
The airline, which provides regional service for Delta Air Lines (DAL.N) and other carriers, has been looking to shore up its finances for months as it tries to ride out volatile fuel prices and a dip in travel demand.

Its shares have fallen 93 percent in the last year to close at 28 cents on the Nasdaq.
What is 28 cents, diluted by (gulp) 1,100 percent?
 
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