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Lcc buys Mesa

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Crzipilot

Well-known member
Joined
May 11, 2002
Posts
1,057
Guess no 900's for PSA


7.8.1 US Airways Code-Share Agreement. Notwithstanding anything in this Plan to the contrary, the Debtors will assume the US Airways Code-Share Agreement as modified by the U.S. Airways Tenth Amendment (which as of September 17, 2010 is being finalized) pursuant to a separate motion to be presented to the Court for approval in connection with confirmation of the Plan. The assumption of the U.S. Airways Code-Share Agreement as modified by the U.S. Airways Tenth Amendment will be effective as of the Effective Date. In consideration for the U.S. Airways Tenth Amendment, US Airways shall receive (i) 10% of the New Common Stock of the Reorganized Mesa Air Group and (ii) the U.S. Airways Note.

On the Effective Date, the Reorganized Debtors and Liquidating Debtors shall be authorized and directed to take any and all necessary and appropriate actions to issue and deliver the Restructured Equity, the New 8% Notes, the Management Notes, and the U.S. Airways Note in accordance with this Plan. The Restructured Equity shall be issued in the form of New Common Stock and New Warrants. The Restructured Unsecured Equity shall
represent 80% of the ownership interests in Reorganized Mesa Air Group (after giving effect to the shares of New Common Stock issuable under the Management Equity Pool and U.S. Airways). The terms of the New 8% Notes shall be set forth in the New 8% Notes Indenture and related documents to be submitted as part of the Plan Supplement. The terms of the Management Notes shall be set forth in the Management Notes Agreement and related documents to be submitted as part of the Plan Supplement. The terms of the U.S. Airways
Note shall be set forth in the U.S. Airways Note Agreement and related documents to be submitted as part of the Plan Supplement. Other than the principal amount, the terms of the New 8% Notes, Management Notes, and U.S. Airways Note shall be substantially similar; provided, however, that the Management Notes shall be subordinated to the New 8% Notes and the U.S. Airways Note.
 
And we hired 48 pilots to staff them per BH's trademark "run 'em thinner than mormon underwear" staffing model.
 
Wow, looks Airways will hold 80% of the new Mesa Air Group.

Kinda like getting six and a half slices of a moldy pizza.
 
no, think it's more like 10%,

Or at second look...10% of the unsecured common stock Plus a Note, which the Usairways note and the management note makes up 20% of the company. So LCC could have just acquired 20% of mesa, or more...or less...but at least 10%
 
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Looks to me like LCC gets 10 percent of the common stock (and a note) in exchange for extending the code share agreement. I didn't see anywhere in the POR where LCC was buying Mesa. Ornstein and Lotz get 6 percent.

The creditors will end up owning the company.
 
So if ornstein and lotz get 6 percent, USair note make up the remaining 20, so that's 14 plus 10% of the stock.....

So US has 24% of mesa........why oh why???

Guess that blows out the mesa f/a that said he figured Mesa was coming out of BK and buying PSA and PDT with their new found millions they would get.....ha
 
So if ornstein and lotz get 6 percent, USair note make up the remaining 20, so that's 14 plus 10% of the stock.....

So US has 24% of mesa........why oh why???

Guess that blows out the mesa f/a that said he figured Mesa was coming out of BK and buying PSA and PDT with their new found millions they would get.....ha

You can't really mix debt with equity. Airways has 10% equity and a note. I'm surmising that is connected to the extension, but I don't know for sure.
According to the POR, the agreement with Airways isn't finalized yet, so it would be hard to say exactly what's going on there. The note has a face value of $5.5 million with a 5 year term. Based on that, it looks like an uneventful reorganization plan with the same management, extension of the Airways contract and the creditors owning the company. At least that's what it looks like at first blush.
 

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