Mesa files ch11 bankruptcy

[Jar Jar]

Took their PBS and block or better!! Laugh it up...unless they go chapter 7 this is just lowering the bar more at the regionals! Now everyone will be competing with a leaner more streamlined Mesa!

The creditors have to agree that mesa can be profitable in the short-med term before they agree to let Ch 11 actually happen.

MESA has to make the case to its creditors that they'd be profitable enough versus selling their assets continuing operations basically as USAirways Express (49 airframes currently). That'd be a hard sell considdering that they've lost over $100M in the last 2 years, while flying over 140 airframes.

Liquidation might be more appealing to the creditors. Last balance sheet has their total assets valued at 891m, total liabilities at 801m. That's ~90m that MESA would have to be able to 'earn' to justify its existence. How many years would that take? Or, would the creditors rather just take their losses and divvy up that $90m now?

 

[WAVIT Inbound]

Quote from elsewhere.

That being said I think Chapter 7 is in order and JO knows it. They are only filing chapter 11 now instead of straight to 7 so that JO can say Delta, United, and US AIR forced them into chapter 7 and it's not his fault.

 

[SkyW120]

That being said I think Chapter 7 is in order and JO knows it. They are only filing chapter 11 now instead of straight to 7 so that JO can say Delta, United, and US AIR forced them into chapter 7 and it's not his fault.

exactly - Mesa just got very cheap now that they can shed all their bad debt. Look for another regional work out a deal and cherry pick their profitable assets (US Air 900 flying and United 700 flying). They will let the rest of the operation slide downhill as it has no value.

 

[Fly2AK]

Mesa still sucks!

 

[olympus593]

MESA pilots have been fcking this industry for long enough! Payback is going to be sweet!

Amen! Stick a fork in them!

 

[olympus593]

Hope that RAH is next.

 

[khsgt]

I think this entire thing depends on whether the judge lets DL/UA follow their contracts and cancel due to the BK filing. If the Judge allows that, then Mesa is Chapter 7 almost immediately. If the Judge forces DL/UA to continue with their contract, then Mesa has a fighting chance.

Unfortunately for all the employees, the best thing to happen industry wise is for Mesa to liquidate. If they survive, Mesa will be leaner, stronger, and meaner and will force more of a downward pressure on the industry, both in terms of wages and contracts with Majors.

This has been a long time in the making, and I find it hard to believe that JO doesn't have at least a plan to get out of it. Whether it works or not is another story. He is a snake of the biggest proportions, and he usually has a way out of ******************** while screwing everybody in his path.

Good luck boys and girls at Mesa, this ship may be headed to the bottom.

 

[rickair7777]

I think this entire thing depends on whether the judge lets DL/UA follow their contracts and cancel due to the BK filing. If the Judge allows that, then Mesa is Chapter 7 almost immediately. If the Judge forces DL/UA to continue with their contract, then Mesa has a fighting chance.

BK only works in one direction with regard to contracts...you can get out of YOUR obligations.

You cannot force your customers to continue to use your services unless there was an existing contract to that effect. Since all those contracts have BK clauses, they are effectively null and void today. It's possible a judge might issue a short-term stay, but it won't hold up for long. The contractual provision in this case is crystal clear, with no grey area or room for argument.

Basically DAL, UA, and US have a choice to make...I wonder what DAL will do

 

[Popeye0537]

Hope that RAH is next.

I don't get you olympuss, why do you put up hot avatar pics of women when your so into men??

 

[olympus593]

I don't get you olympuss, why do you put up hot avatar pics of women when your so into men??

I'm into men? Did not know that, thanks for the info, now get back under BB's desk.