Mesa Air Group Settles Aloha Lawsuit and Agrees to Enter Long Term Licensing Agreemen

[bmpilot2003]

http://www.mondaq.com/article.asp?articleid=68228

there it is.

 

[brokedash]

It only stipulates the supension is throught 1/16/09. Not statement on what happens after that... Could start enforcing the rules again.

 

[CX880]

Why would they extend it just one more month?

 

[Broke in CVG]

Why would they extend it just one more month?

They didn't expand it just for MESA, it was a temporary measure because of the huge number of stocks that slid below the $1 mark in Oct. Had they not suspended this rule it would have generated a huge amount of paperwork and cost to NASDAQ. To be honest, I am not sure whether this even applies to MESA since their stock has been below $1 since early spring and they had already been notified of delisting. Who knows....

 

[Broke in CVG]

This applies to Companies that fell out compliance after the Oct date and does not apply to MESA since they have not been in compliance since spring and such they will still be booted Dec 15th.

Effective immediately, NASDAQ has suspended the enforcement of the rules requiring a
minimum $1 closing bid price.

• Effective immediately, NASDAQ has also suspended the enforcement of the rules
requiring a minimum market value of publicly held shares (MVPHS).

• NASDAQ will not take any action to delist any security for these concerns during the
suspension.

• The suspension will remain in effect through Friday, January 16, 2009. These rules will
be reinstated on Monday, January 19, 2009.

Given the current extraordinary market conditions, NASDAQ has determined to suspend the
bid price and market value of publicly held shares requirements through Friday, January 16,
2009. In that regard, on October 16, 2008, NASDAQ filed an immediately effective rule change
with the Securities and Exchange Commission, such that companies will not be cited for any
new concerns related to bid price or market value of publicly held shares deficiencies. These
rules will be reinstated on Monday, January 19, 2009.

As a result of the suspension, all companies presently in the compliance process will remain at
that same stage of the process. However, if such a company is presently subject to being
delisted for concerns not related to the bid price or market value of publicly held shares
requirements, it will continue in that process with respect to those other concerns. Over the
next few days, NASDAQ staff will contact each company affected by this suspension to discuss
the specific impact to the company. NASDAQ will continue to monitor companies to determine
if they regain compliance with these requirements during the suspension.

NASDAQ believes that this temporary suspension will allow companies to focus on running
their businesses, rather than satisfying market-based requirements that are largely beyond
their control in the current environment. Moreover, this temporary suspension should help to
restore investor confidence in affected NASDAQ companies as the suspension will allow
investors to make decisions without considering the likelihood of a very near-term delisting. In
the coming months, NASDAQ will continue to monitor the affect that market conditions are
having on the operation of our rules.

 

[unclemike]

Does anyone know...

In typical corporate bankruptcy cases, do the customers (in this case, Delta, US Air, etc..) have the legal right to dump the bankrupt supplier? More specifically, if Mesa goes BK, can Delta automatically terminate their supply relationship, like they've been trying to do for a while now?

If the answer is yes, then one way of looking at this move by Mesa is that they might be thinking that BK is a given, and they're looking to get out of the regional business altogether. In BK, they can restructure, shed some debt and planes, enter into new leases, and create a new (old) identity as "Aloha" with larger planes. The larger planes would only be possible, scope wise I assume, if they exited their current regional contracts.

If it's true that they have over $100M due in the next few months, I don't see any way they can avoid BK. I think they're on track for something like $35M in cash by year end. I can't imagine any way that they can convince either creditors or potential owners that their current business model is worth an additional $100M in this tight environment. After all, they probably need more than $35M in cash reserves just to continue normal business operations.

I think a key thing here is whether the major carrier customers can terminate the supply relationship if a supplier goes BK. If so, I think Mesa might be looking for a different avenue of survival.

 

[Broke in CVG]

According to Comair's ex President, yes if Mesa files for BK the disputed contract between Mesa and DL is moot as there is a very black and white provision that allows DL to walk away if there is any material change in ownership - ie BK = creditors become the owners.

However, if you look at Mesa's SEC 14A filling...

http://yahoo.brand.edgar-online.com/default.aspx?companyid=6367

they are attempting to get shareholder approval to issue more common stock to use to pay off the bonds in early 2009. Currently under NASDAQ/SEC rules they can not issue more than 20% of the outstanding shares without shareholder approval. Which would amount to additional 5,385,071 shares @ $0.30 which would only give them $1,615,521 - FAR SHORT of the $97 million they need. They want to issue 315,000,000 shares to raise $94,500,000 to pay off the bonds.

There are currently 26.86 million shares outstanding and they want to issue another 315 million???? That would dilute the shares to approximately $0.02 a share!

So.... I think JO's plan is to try to issue shares to buy off the bonds and then declare BK. He is about to buy off those bonds with what amounts to toliet paper (315 million shares worth $0.02) and then flush the company.

Boonga, Boonga or Death by Boonga, Boonga.

 

[CX880]

If it's true that they have over $100M due in the next few months, I don't see any way they can avoid BK. I think they're on track for something like $35M in cash by year end. I can't imagine any way that they can convince either creditors or potential owners that their current business model is worth an additional $100M in this tight environment. After all, they probably need more than $35M in cash reserves just to continue normal business operations.

.

But when you read reports of JO, he makes it sound like everything is alright. Keeps talking about the future. Doesn't sound like someone who is about to file BK. I'm willing to bet they've found some kind of investment opportunity or something.

 

[sniper]

But when you read reports of JO, he makes it sound like everything is alright. Keeps talking about the future. Doesn't sound like someone who is about to file BK. I'm willing to bet they've found some kind of investment opportunity or something.

Mesa pilots should vote NO on their TA.

JO has something going and they will be screw

 

[Metro752]

Vote No!

 

[pdub20s]

But when you read reports of JO, he makes it sound like everything is alright. Keeps talking about the future. Doesn't sound like someone who is about to file BK. I'm willing to bet they've found some kind of investment opportunity or something.

JO is a used car salesman. He can sell water to a fish...

 

[Broke in CVG]

But when you read reports of JO, he makes it sound like everything is alright. Keeps talking about the future. Doesn't sound like someone who is about to file BK. I'm willing to bet they've found some kind of investment opportunity or something.

His house is currently listed for sale...

 

[bmpilot2003]

This applies to Companies that fell out compliance after the Oct date and does not apply to MESA since they have not been in compliance since spring and such they will still be booted Dec 15th.

Do you have a link that states this?

 

[bmpilot2003]

JO is a used car salesman. He can sell water to a fish...

Or a job to you.

 

[mtsupilot376]

It's true his mansion really is for sale check out this picture from the listing.

http://century21.com/listings/NM/JOs_chithole.jpg

 

[mdanno808]

Or a job to you.

Now that's funny.

 

[mdanno808]

Court delays decision on Aloha name




Associated Press - December 3, 2008 6:44 PM ET
HONOLULU (AP) - A U.S. Bankruptcy Court judge has temporarily blocked a move by Mesa Air Group to rebrand its go! airlines as Aloha Airlines.
Judge Lloyd King decided Wednesday to continue the matter until Feb. 19 to give both supporters and opponents more time to respond.
Phoenix-based Mesa wants King to approve Tuesday's auction sale in which Yucaipa Cos. submitted a winning $750,000 bid for Aloha's intellectual property rights.
Under a legal settlement reached last week, Yucaipa has agreed to license Mesa to use the Aloha name for 10 years.
Aloha filed for bankruptcy and folded its passenger service in March. The airline blamed high fuel prices and a 2-year-long airfare price war triggered by the entry of go! into the Hawaii market in 2006.

 

[mdanno808]

Mesa's attempt to license Aloha name blocked

By Dave Segal
POSTED: 11:30 a.m. HST, Dec 03, 2008
Mesa Air Group’s attempt to license the Aloha Airlines name and re-brand Mesa’s go! aircraft was temporarily blocked today by federal Bankruptcy Judge Lloyd King.

Citing an insensitivity by Mesa and Yucaipa Cos., which earlier this year bought the Aloha lawsuit against Mesa, King said he would continue the matter until Feb. 19 to give both supporters and opponents of the deal more time to respond.

Yucaipa, the former controlling shareholder for Aloha, had won the rights to Aloha’s intellectual property yesterday at an auction with a $750,000 bid that reduced the amount of money it was owed by Aloha.

Mesa had gained the apparent licensing rights to the Aloha name through a lawsuit settlement it reached last Friday with Yucaipa.
Mesa Air Group’s attempt to license the Aloha Airlines name and re-brand Mesa’s go! aircraft was temporarily blocked today by federal Bankruptcy Judge Lloyd King.
Citing an insensitivity by Mesa and Yucaipa Cos., which earlier this year bought the Aloha lawsuit against Mesa, King said he would continue the matter until Feb. 19 to give both supporters and opponents of the deal more time to respond.
Yucaipa, the former controlling shareholder for Aloha, had won the rights to Aloha’s intellectual property yesterday at an auction with a $750,000 bid that reduced the amount of money it was owed by Aloha.
Mesa had gained the apparent licensing rights to the Aloha name through a lawsuit settlement it reached last Friday with Yucaipa