tpersuit it really depends on the conditions set when the deal is made. If the note holders thought the stock was going to be worth something they'd allow it as payment. Hindsight being 20/20 I bet there are few that would rather eat dog food but it is what it is. Either way I doubt Mesa will be around much longer. I give it two months before drastic events start happening. During 2008 they never released any of their quarterly reports on time. This usually happens for a few reasons. One of which being a nice coverup.

I wouldn't be surprised if JO doesn't get investigated after this. Look for Mesa to come out with one MASSIVE loss at the very end that they can't account for. People will be asking how this debt all the sudden appeared and then they'll probably start digging through JO and his wife's stock purchases and sales along with business practices. They already don't have enough cash on hand to hand all the legal fines. I think JO's way of business right now is simply to jerk around as many people he can so when the penny drops there will be a zillion lawsuits from so many directions that no one will know where to start or be able to trace the money meanwhile he's already out of the country or enjoying life on some retreat of his.