Originally Posted by
Boomer
I'm no accountant, so let me see if I got this straight...
You're saying Mesa can create 900 million shares of stock out of thin air, it will not go down in value because Mesa says so, and then they are allowed to use it as money to pay off debt?
If it was that easy, why would any company in the history of Earth ever need to file bankruptcy?
While he's at it, why doesn't JO just issue 57 billion shares of Mesa stock and use it to buy Delta?
I'm not really an expert on this, but from what I understand they will be issued at (5 day avg), but will be valued at current market value. (The .04 a share or whatever it may be.) So, really, they get less than what the value of their bonds are.
But you really cannot blame JO, these were the terms of the bonds when they were issued. The investors knew full well that it could come to this. Personally if it was my choice, I would ride it out a few more years.