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Old 09-22-2010 | 08:46 PM
  #1248  
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rickair7777
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From: Engines Turn or People Swim
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Originally Posted by winglet
Releasemaster,

It is plausible. If this plan is accepted, MAG will be a profitable company with a desirable fleet type and a structured plan to pay off debts. The BOD will consist of a majority of directors appointed by the creditors. The creditors and US Airways will also receive the majority of the new issue stock. MAG management, with 10% of the new issue stock, will be in a weak position to prevent a possible M/A.

winglet

p.s. Did you see the big reveal of Nilchii, Inc. in the disclosure statement? Apparently MAG loaned Spirit $15 million in 2006 resulting in a valuation of the investment at $61.4 to $95.6 million.

Hint: Indigo Partners, Oaktree Capital Investment, and William A. Franke .

SKW INC will probably not touch mesa with only four years on the airways contract. They have historically been very leery about acquiring hardware with any significant tail risk. It's remotely possible that the street value of the 900's would be enough to make it worthwhile...I'm not sure how beat up those units are today.
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