Releasemaster,

Correct. A Status Conference has the possibility to be interesting because a range of items could be revealed including:

-- new discovery issues
-- new motions
-- new negotiations for settlement
-- schedule and length of proceedings
-- Judge's impressions

MAG has received a deadline on providing financial reports to the court; "until the later of March 5th or five days prior to the Section 341 Meeting". The date of the Section 341 Meeting has been scheduled for Feb. 26th (Docket 206 2/1/2010).


Correct. These taxes are most likely priority claims. Most taxes under Chapter 11 are not dischargeable. They will eventually have to be paid (or negotiated).

On that note, there are now a total of 62 claims ranging from $69.46 to $2,857,793.39.

The Creditor service list has also been compiled revealing 11,693 Creditors. Check the names, you may be on the list .

winglet

 

Does anyone know if Delta is trying to cancel all Mesa/Freedom flying? Or is it just the 50 seat flying they are intrested in getting rid of. And how many of each type does Mesa group fly for Delta at this time?

 

Don't quote me on this. We only operate the ERJ 145 for Delta out of CVG. Presently 22 airframes worth of flying. That is the extent of our Delta flying.

Yes, Delta is trying to get rid of all Mesa/Freedom flying. Presently tied up in the courts. Will be tackled in the Bankruptcy Court, southern district of New York, in July.

 

There are five litigation issues pending between Delta and MAG. The resolution of these cases are a determining factor in the Chapter 11 reorganization of MAG. Total claims by Mesa are $70 - $80 million. Here are the cases:

1. Mesa v. Delta: Code-Share agreement for 22 MAG ERJ-145's. Georgia District Court placed agreement under injunction. Delta appealed and lost in the Georgia Court of Appeals. Mesa is seeking assumption of the contract in the US Bankruptcy Court, Southern District of New York.

2. Delta v. Mesa: Material Breach of Code-Share agreement. Pending in Georgia District Court.

3. Mesa v. Delta: Damages for termination of CRJ-900 agreement (Delta owns aircraft). Pending in Georgia District Court.

4. Delta v. Mesa: Counterclaim against Delta CRJ-900 damages. Pending in Georgia District Court.

5. Mesa v. Delta: Seeking return of seven engines from the CRJ-900 agreement. District court ruled Delta forfieted it's lien claims. Delta appealed and lost. Pending in Georgia District Court.

winglet

 

It looked like there were about 10 more on the other side of the airport in similar condition (you can just make them out to the left side of the furthest left a/c's engine as a white line). Note the red tail in the back (Kungpeng CRJ).

Every plane had something removed from it.

 

Wow, JO is not kind to parked aircraft. How much do engines cost for those planes?

 

MAG held leases on 36 ERJ-145's when bankruptcy was declared. The contract under injunction with Delta is for 22. There should be approximately 14 parked, discounting any allocated spares.

winglet

 

Not defending him by any means but he was paying leases on them, so may as well can them for parts that can unground other airplanes who are making money.

 

Also, many airlines also lease the engines from the engine manufacturer. They may have made deals to return some of the engines to the lessors.

 

Eagle did the same thing. For a couple months, they had at least a dozen ERJs sitting in CMI without engines. I think its a standard thing to take the engines off. Im sure its a lot easier to work on them inside at ground level rather than mounted on the plane. Although I don't think Mesa is working on the engines.