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Mesa Positioning for Chapter 11?

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alpine1989

Well-known member
Joined
Dec 27, 2005
Posts
102
1) Mesa Reports 3Q Loss

2) Mesa to sell Kunpeng stake

3) Paul Foley named COO

4) Pinnacle to fly Freedom CRJ-900s for Delta

5) Shutuplic to Hawaii

6) Admin/Support layoffs
 
My fear is that they will go Ch 11, restructure, pilots will take further cuts, further lowering the bar, and giving them better ability to low ball. Bankruptcy could be bad for all of us, be careful what you wish for.
 
1) Mesa Reports 3Q Loss

2) Mesa to sell Kunpeng stake

3) Paul Foley named COO

4) Pinnacle to fly Freedom CRJ-900s for Delta

5) Shutuplic to Hawaii

6) Admin/Support layoffs

none of these point to BK..

We would go BK if:

1) We lost the injunction (Not likely)

2) cant pay the bonds due in Feb.
(trading right now 34 cents to the dollar due to the economy)

We are not headed there yet, and no filings have been made. There is some wiggle room when It comes to paying off bonds. A new TA might make it to the pilot group soon..
 
none of these point to BK..

We would go BK if:

1) We lost the injunction (Not likely)

2) cant pay the bonds due in Feb.
(trading right now 34 cents to the dollar due to the economy)

We are not headed there yet, and no filings have been made. There is some wiggle room when It comes to paying off bonds. A new TA might make it to the pilot group soon..

Wiggle room? Are you f***ing kidding me? Bond holders want CASH! They can't do a debt/equity swap because they have no equity - the stock is worthless and will be de-listing from the NASDAQ on Dec 15th too! Bond holders want CASH, not egg rolls, not spare parts, and certainly not JO's BS behind door #2.... CASH, CASH, CASH!

There is NO credit available. If a company had good credit, colateralizeable assets and positive cash flow they still couldn't get that much funding right now. Mesa has NONE of those. The credit markets are FROZEN while Banks and Financial Institutions figure out what kind of liabilities they actually have with these CDS (Credit Default Swaps) they have been selling for the past two years. There are currently an estimated $45 Trillion, yes Trillion, out there and no one really knows their value.

So, there is no wiggle room for Mesa. BK = Liquidation and sale of whatever assets they have.

MESA SUCKS!
 
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I think Mesa's been positioning for Chapter 11 pretty much its entire existence, so nothing new there.
 
My fear is that they will go Ch 11, restructure, pilots will take further cuts, further lowering the bar, and giving them better ability to low ball. Bankruptcy could be bad for all of us, be careful what you wish for.


Well, if Mesa goes into Chapter 11, Delta can void their contract without having to go to court. Also, if the rumors about United are true, then that gives them an out as well. Mesa is already the cheapest thing out there, and the majors are starting to realize that you get what you pay for.
 

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