• NC Software is proud to announce the release of APDL - Airline Pilot Logbook version 10.0. Click here to view APDL on the Apple App store and install now.

Mesa buying 52% of Delta

satpak77

Marriott Platinum Member
Joined
Dec 2, 2003
Posts
3,015
Total Time
5000+
true or false? I heard this from a person who heard this from someone who heard it from someone else


Mesa Air Group to take a 52% ownership stake in now-bankrupt Delta. Delta Air Lines, with 158 Million shares outstanding, priced at now 0.73 cents, will see financially strong MAG purchase 82 Million shares for the bargain basement price of appox $60M dollars.

According to Jonathan Ornstein, CEO: "This will give Mesa Air Group a much needed opportunity to compete with the legacy carriers. It is anticipated that as aircraft are retired from the mainline Delta fleet, they will be replaced by fuel efficient regional jet aircraft."
 

jarhead

master of my domain
Joined
Mar 27, 2002
Posts
1,162
Total Time
low
satpak77 said:
true or false? I heard this from a person who heard this from someone who heard it from someone else


Mesa Air Group to take a 52% ownership stake in now-bankrupt Delta. Delta Air Lines, with 158 Million shares outstanding, priced at now 0.73 cents, will see financially strong MAG purchase 82 Million shares for the bargain basement price of appox $60M dollars.

According to Jonathan Ornstein, CEO: "This will give Mesa Air Group a much needed opportunity to compete with the legacy carriers. It is anticipated that as aircraft are retired from the mainline Delta fleet, they will be replaced by fuel efficient regional jet aircraft."
I strongly doubt that a the bankruptcy court judge would or could rule on such a plan within an hour of a chapter 11 filing. EVERYTHING now requires court sanction of any presentations by Delta for reorganizations.
 

chperplt

Registered User
Joined
Nov 25, 2001
Posts
4,123
Total Time
.
He can buy all the stock he wants.... The stock is going to be worthless when they leave BK..
 

satpak77

Marriott Platinum Member
Joined
Dec 2, 2003
Posts
3,015
Total Time
5000+
if true, this would make the AA/bankrupt TWA merger look like childs play
 

wheelsup

Non-Registered User
Joined
Mar 9, 2004
Posts
737
Total Time
>1
chperplt said:
He can buy all the stock he wants.... The stock is going to be worthless when they leave BK..

Isn't this exactly what AWAC did though? They purchased X amount of stock in US Air. I don't think their stock is useless.

~wheelsup
 

chperplt

Registered User
Joined
Nov 25, 2001
Posts
4,123
Total Time
.
Isn't this exactly what AWAC did though? They purchased X amount of stock in US Air. I don't think their stock is useless

No, that's not what they did at all. They purchased an equity stake in US Air via a cash investment. They purchased a portion of the company but not via a standard stock purchase.

You're talking about two very different things here.
 

wheelsup

Non-Registered User
Joined
Mar 9, 2004
Posts
737
Total Time
>1
chperplt said:
No, that's not what they did at all. They purchased an equity stake in US Air via a cash investment.

Cool. Thanks.

So, my next question is, what would stop MAG from doing the same to delta? Is it done through a judge in BK court? Or can any old company with enough cash purchase a controlling stake in delta?

~wheelsup
 
Top