Chapter 11 May Not Work This Time
Chapter 11 may not be an option during this economic crisis, according to analysts who think the capital to fund restructuring and exit bankruptcy will not be there since airlines are such a poor investment. This coupled with creditors, seeing the writing on the wall, forcing the sale of assets, does not bode well for Mesa which said that if Delta’s contract with Freedom is actually cancelled it could force a Chapter 11 filing by mid-July. The industry has already seen numerous carriers eliminated such as Aloha which went directly to Chapter 7 recently.
Mesa was also notified on May 22 that it does not comply with NASDAQ filing requirements for continued listing and could be "de-listed" from The NASDAQ Global Select Market. It has requested a hearing before a NASDAQ Listing Qualifications Panel to review the Staff Determination. The Notice arises as a result of Mesa's failure to timely file its Form 10-Q for the quarter ended March 31, 2008.