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Mesa buying 52% of Delta

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satpak77

Marriott Platinum Member
Joined
Dec 2, 2003
Posts
3,015
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."
 
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.
 
He can buy all the stock he wants.... The stock is going to be worthless when they leave BK..
 
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
 
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.
 
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
 

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