Comair updates?
11-17-2008 | 12:21 PM
#9999
Line Holder
Joined: Dec 2007
Posts: 37
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From: EMB 175 FO
MAG did SEC filing last week to increase authorized shares from 75 to 900 million shares so they can issue new stock to debt holders to pay off the $M debt puts that can come due in Jan/Feb. As the price drops, they will need to issue more stock, which will further dilute ownership, which will drop the price and cause the need for larger amounts of stock to meet the $M and so on and so forth in a circular death spiral.
Mornings released another recent negative report among other things moving their price valuation to 0 from $.40 and estimating MAG burned $M in cash in the first 9 months of '08 and will burn $M in the last 3 months, leaving MAG with only $36 mil at calender year-end - not enough to pay the debt if the note holders file a put, hence the move to issue stock.
Mornings released another recent negative report among other things moving their price valuation to 0 from $.40 and estimating MAG burned $M in cash in the first 9 months of '08 and will burn $M in the last 3 months, leaving MAG with only $36 mil at calender year-end - not enough to pay the debt if the note holders file a put, hence the move to issue stock.
Mesa has bond indentures due in the relatively near term. Despite some success in the renegotiating some of these payments, Mesa still has $17.4 million to pay to its bond holders in the June quarter 2008 ($12 million of which has not yet been paid), and nearly $100.6 million to pay in March 2009. Mesa shareholders have authorized the sale of additional stock to pay the bondholders, but the stock price at less than $1, the amount of stock that Mesa would need to sell would cause a 'change in control' of the company. This would trigger termination provisions in its codeshare agreements with US Airways, United and Delta.
11-17-2008 | 12:27 PM
Gets Weekends Off
Joined: Jan 2007
Posts: 340
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From: awkward & cramped
On Epic: Comair update meetings with J. Glamor Shots S. tomorrow at 10 a.m. in the GO and then 11:30 a.m. at gate A1.
Isn't this the way that Bornhorst made the announcement last year?
Bring your camera to ensure a front row seat!
Isn't this the way that Bornhorst made the announcement last year?
Bring your camera to ensure a front row seat!
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