Mesa At $0.04 a Share

Flyprdu

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Pssh..
There was a huge run on Mesa stock this afternoon. 7.2 million transactions today.

What could possibly be going on?
 

RiddleEagle18

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News coming fast and changing fast! Just came out an hour ago. Looks like they reached another agreement with some of the bond holders.


Mesa Air Group Announces Completion of Transactions with Certain Holders of Senior Convertible Notes due 2023 and the Results of its Tender Offer for its Senior Convertible Notes due 2024

PHOENIX, Feb. 11 /PRNewswire-FirstCall/ -- Mesa Air Group, Inc. (Nasdaq: MESA) announced it completed transactions with certain of the holders of its Senior Convertible Notes due 2023 (the "2023 Notes") resulting in the exchange of $21,271,250 in aggregate face amount of the 2023 Notes for the following consideration: (i) $878,269 in cash, (ii) 8,430,458 shares of the Company's common stock, no par value (the "Common Stock"), and (iii) $983,937 in aggregate principal amount of the Company's new 8% senior unsecured notes due 2012 (the "2012 Notes"). The issuance of the Common Stock and 2012 Notes in the exchange is exempt from registration under the Securities Act of 1933, as amended, pursuant to Section 3(a)(9) and Section 4(2) thereof. As of the date of this report, approximately $12,656,280 million (at today's value) in aggregate principal amount at maturity of the 2023 Notes remains outstanding.

(Logo: http://www.newscom.com/cgi-bin/prnh/19990210/LAW065)

Also on February 11, 2009, the Company announced the results of its tender offer to up to $120.3 million in aggregate face amount of its Senior Convertible Notes due 2024 (the "2024 Notes"). The tender offer expired at 11:59 p.m., New York City time, on February 10, 2009. Pursuant to the terms of the offer, $13,224,000 in aggregate face amount of 2024 Notes, or approximately 11% of the 2024 Notes, were validly tendered and not withdrawn. The Company accepted all of the tendered 2024 Notes, and in exchange therefor, issued 64,665,360 shares of Common Stock and paid a nominal amount of cash in lieu of fractional shares of Common Stock. The issuance of the Common Stock in the tender offer is exempt from registration under the Securities Act of 1933, as amended, pursuant to Section 3(a)(9) and Section 4(2) thereof.

The Company also announced its intent to immediately resume discussions with certain holders of its Senior Convertible Notes due 2024 (holding $104,030,000 million in aggregate face amount) to enter into agreements with such holders imminently on terms substantially equivalent to the previously announced rescinded agreements. No assurance can be given that the Company will be able enter into mutually acceptable agreements with such note holders. If such discussions prove unsuccessful, the Company intends to permit such holders to put their notes to the Company on the same economic terms as previously provided for under the terms of the Indenture governing such notes, including at the same pricing for the notes tendered on or before February 10, 2009.

This press release contains various forward-looking statements that are based on management's beliefs, as well as assumptions made by and information currently available to management. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable; it can give no assurance that such expectations will prove to have been correct. Such statements are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, projected or expected.
 

gator_hater

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enough
Anytime 75 million new shares of anything hit the market it is going to drop. The real question is can they reach a new deal on the recinded agreements.
 

Flyprdu

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Pssh..
Doing some quick math.. wouldn't Mesa stock have to increase by 3000% in order to yield what principal needs to be repaid??
 

gator_hater

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enough
Possibly more than that. Not too long ago there was something about the BOD approving up to 900 million additional shares. That when the current issued share count was about 25 mil and trading at .19. Even if they only issued 25% of those 900 to payback bond holders that would put the price way below a penny.
 

Raoul Duke

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Looks like they restructured all of the bonds. Unbelievable. I am at a loss for words.
 

kf4amu

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Looks like they restructured all of the bonds. Unbelievable. I am at a loss for words.
Nope. Besides the 12 million of 2023 notes still outstanding...


"The Company also announced its intent to immediately resume discussions with certain holders of its Senior Convertible Notes due 2024 (holding $104,030,000 million in aggregate face amount) to enter into agreements with such holders imminently on terms substantially equivalent to the previously announced rescinded agreements. No assurance can be given that the Company will be able enter into mutually acceptable agreements with such note holders. If such discussions prove unsuccessful, the Company intends to permit such holders to put their notes to the Company on the same economic terms as previously provided for under the terms of the Indenture governing such notes, including at the same pricing for the notes tendered on or before February 10, 2009."

This says they intend to resume talks. Doesnt mean they have agreements to restructure yet.
 

Flyprdu

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Nope. Besides the 12 million of 2023 notes still outstanding...


"The Company also announced its intent to immediately resume discussions with certain holders of its Senior Convertible Notes due 2024 (holding $104,030,000 million in aggregate face amount) to enter into agreements with such holders imminently on terms substantially equivalent to the previously announced rescinded agreements. No assurance can be given that the Company will be able enter into mutually acceptable agreements with such note holders. If such discussions prove unsuccessful, the Company intends to permit such holders to put their notes to the Company on the same economic terms as previously provided for under the terms of the Indenture governing such notes, including at the same pricing for the notes tendered on or before February 10, 2009."

This says they intend to resume talks. Doesnt mean they have agreements to restructure yet.
New article states they've reached a restructuring agreement with some of their bond holders. Opened today a $0.05.

The way that restructuring is set up, it would take about a 30x increase in stock price to come close to being profitable for bond holders. That seems incredibly unlikely.. even in 15 years.

So for these bond holders... I assume that they are trying to take what they can get. But I don't think this setting Mesa up for any big rebound in stock price, as this is a very unhealthy and unlikely way of repaying their debts.
 

USCtrojan

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New article states they've reached a restructuring agreement with some of their bond holders. Opened today a $0.05.

The way that restructuring is set up, it would take about a 30x increase in stock price to come close to being profitable for bond holders. That seems incredibly unlikely.. even in 15 years.

So for these bond holders... I assume that they are trying to take what they can get. But I don't think this setting Mesa up for any big rebound in stock price, as this is a very unhealthy and unlikely way of repaying their debts.
And I would assume delisting as well coming in the near future.

Trojan
 

pdub20s

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..
I think JO must have a ACE up his sleeve...interesting to see what it is.
 

damnflyboy

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I wish I could run my life the way these companies run their businesses (and get away with it)...not to mention the way the US government runs it's own "business".

If this were the case, it would be OK to:
1) Have over $36,000 in personal consumer debt.
2) Force others at threat of ruin to pay for the leeches of society.
3) Run ponzi schemes on the side (social security, for one)

I'm too mad to keep thinking about it right now. Am I missing anything? (I'm sure I am)
 
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Jon Rivoli

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I just bout 15,000 shares, if it goes to a nickle, I make 20%. I might also get a seat on the board.
 

Flyprdu

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Pssh..
Apparently MESA has issued 65.7 million additional shares as compensation to bond holders for $120.3 million in outstanding debt the company has.

That more than triples the amount of outstanding shares of the company. *Which also explains why the stock value plummeted yesterday.
 
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Apparently MESA has issued 65.7 million additional shares as compensation to bond holders for $120.3 million in outstanding debt the company has.

That more than triples the amount of outstanding shares of the company. *Which also explains why the stock value plummeted yesterday.
This isn't exactly correct.

Mesa Filings Today
8-KFeb 12, 2009
http://www.pinksheets.com/edgar/GetFilingPdf?FilingID=6402343


And

SC TO-I/A
AMENDMENT NO. 3 TO SCHEDULE TO
http://www.pinksheets.com/edgar/GetFilingPdf?FilingID=6402351
 
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