Originally Posted by
fastback
If you think the company won't go bankrupt, then you might get the deal of a lifetime. Be real careful here though. I think Republic brought in the same consultant that Mesaba used to declare (a sham) bankruptcy right after signing a great contract for its pilots. Can anyone confirm or elaborate?
Yes Seabury Group, Barclays Capital, Delta, and Davis-Polk engineered the post-contract sham bankruptcy of the merged Pinnacle/Mesaba/Colgan Corp.
They essentially paid out 66% of cash reserves to the CEO and VP, then gradually started booking costs for things like the new contract, Q400 losses, contested training reimbursement from Delta, etc..
Basically, Delta sold Mesaba to Pinnacle, ran us into a sham BK, used the cash to payoff execs and Colgan victims, then DAL bought us back outta BK for pennies on the dollar--and now that company is called Endeavor.
Basically a leveraged buyout...aka legal money laundering/theft.