Hawaiian Settles With Mesa

[V-1]

Hawaiian Air, Mesa Air In Lawsuit Settlement >HA MESA


DOW JONES NEWSWIRES
April 30, 2008 8:47 a.m.

DOW JONES NEWSWIRES Hawaiian Holdings Inc.'s (HA) Hawaiian Airlines said it settled a lawsuit with Mesa Air Group (MESA) regarding Mesa's alleged misuse of confidential and propriety information obtained during Hawaiian's Chapter 11 bankruptcy reorganization in 2004.
The carrier said Mesa will pay it $52.5 million in cash and withdraw an appeal of the $80 million judgment awarded against Mesa by the U.S. Bankruptcy Court in Honolulu in October 2007.
Separately, Mesa, a Phoenix-based airline holding company, said it will receive $37.5 million from the bond the company previously posted with the bankruptcy court.
Mesa said it doesn't admit to any wrongdoing, and the settlement doesn't restrict flight by Go, its Hawaiian inter-island subsidiary.
-Shara Tibken; 201-938-5400; [email protected]

 

[JumpersAway]

D@mn- I wanted to see them pay the full 80 million!

 

[rudder]

Simply delays the Mesa BK filing by 30 days or so. Mesa hoping for a favorable judgement in the DL injunction petition.

 

[JonnyKnoxville]

Isn't $37.5 million about what Mesa needed to pay some upcomming debt in june.

 

[hyperboy]

hal

yup?!

 

[viper548]

I think it was $32M...now they have enough to pay it

 

[V-1]

Perhaps now they'll be no need to try to raise $35 million by issuing stock at .50/share. Short term relief for Mesa shareholders.

 

[fly4surf]

Spend 50 to make 30.

Brilliant.

Should have been management.
Should have been management.
Should have been management.

 

[Soverytired]

Clearly, Mesa must have felt that a successful appeal wasn't very likely. And they desperately need access to the cash tied up in the bond.

What I find more interesting is that Hawaiian settled. I suspect they're probably of the opinion that it's better to get what they can out of Mesa now as opposed to holding out for the full $80 million and risk not getting squat if/when Mesa goes bankrupt.

That or Hawaiian needs the cash in the near term as well. Kudos to them, but I have to say, I wish they could have held out for the full judgment.

Oh . . . kind of funny how Mesa is still not admitting any wrongdoing. It's like they're saying "We're innocent after being proven guilty."

 

[rickair7777]

Clearly, Mesa must have felt that a successful appeal wasn't very likely. And the desperately need access to the cash tied up in the bond.

What I find more interesting is that Hawaiian settled. I suspect they're probably of the opinion that it's better to get what they can out of Mesa now as opposed to holding out for the full $80 million and risk not getting squat if/when Mesa goes bankrupt.

That or Hawaiian needs the cash in the near term as well. Kudos to them, but I have to say, I wish they could have held out for the full judgment.

Oh . . . kind of funny how Mesa is still not admitting any wrongdoing. It's like they're saying "We're innocent after being proven guilty."

I think this was short-sighted on the part of HA. I believe the money was already in an escrow account or bonded by court order, so it should have been secure even in BK.

If HA had held out, they probably would have rid themselves of Go! the easy way. Oh well, maybe they needed the money now.