Originally Posted by
G-Dog
The timing of all this seems strange. Would it not be prudent to find out the results of the Delta lawsuit first before going bankrupt? This is why I think they have come to an agreement already. Only time will tell.
G-Dog,
If there was an agreement with Delta then Mesa would have to had divulged that information during it's bankruptcy affadavit.
Mesa has three lawsuits against Delta:
1. ERJ Contract Termination against which Mesa so far has been awarded an injunction
2. CRJ-900 Contract Termination
3. Seven GE engines that Mesa claims.
Delta has one lawsuit against Mesa for material breach. No trial dates have been set.
During Chapter 11 proceedings everything is effectively frozen as-is. The Debtor(Mesa) has four months to come up with a plan. If the plan isn't approved by the court (with extesions) then Creditors (Wells Fargo, Bombardier, Embraer, GE, etc.) can enter
their plan. The bankruptcy court will either approve a plan or not. Delta will have to wait along with the rest of us and see what the plan is.
winglet