Tic-Toc, Tic-Toc JO
 

You have 26 cents to live!!!

God speed to the victims...

Why wouldn't they do a reverse stock split in order to prevent being delisted, others have done it.

So how does this delisting thing work? I've read that if you trade under $1.00 for 30 consecutive days, the process is set in motion. At that point, you have anywhere from 90 to 180 days depending on which criteria you're not meeting. The last time MESA traded for $1.00 or more was 5/06/2008. That means that on 6/06/08 they should have gotten the notice that they were in danger of being delisted if they didn't get their stuff together within 90 or 180 days. 90 days would have been 9/06/08 and 180 days would be 12/06/08 if my math is right.

Can somebody explain why they haven't been delisted yet and if they are going to be delisted in December or what? I'm confused as usual.


EDIT: After googling some more, I discovered that MESA has until 12/15/2008 to regain compliance or they will be delisted. That should be an interesting day.

EDIT AGAIN: It looks like MESA has to close above $1.00 per share for 10 consecutive days for the delisting not to happen. They also plan to request a hearing if they don't meet the requirements in time. The hearings take another few months, during which time I'm not sure if they get to stay listed on the NASDAQ or not.

For the most, it ultimately means pooling together shares by willing participates who have already seen huge losses in the past 3 to 4 months on a farm that has shown no sign of improvement with employee relations. It would have to combine at least 5 to 1 shares to keep from delisting...



The wretched truth about reverse stock splits - MSN Money

If you understand what a reverse stock split is why would you start a thread like they are going to be delisted tomorrow?

Investors primary concern has nothing to do with improvements on employee relations, it wants return on investmens. Becoming delisted wont make them any money so expect to see a reverse stock split like XJet did recently.

They have a shareholders meeting on December 22nd. That should be interesting. I say sell everything and just move on.

The stock could be the least of their problems.

I have a really hard time grasping what happens when a company goes bankrupt. Can anybody shed some light on what might happen to mesa should they have to file for bankruptcy? Are they basically done at that point or will they hang around for a long time after that? It seems like the pattern for airlines is that you file for bankruptcy, go to court and get all kinds of restructured and continue on, hopefully succeeding and coming out of bankruptcy a stronger company.

It just sounds like we're near the end of Mesa, but i think the end might really just be the beginning of something else.

When a company enters Chap.11, they list all their debt outstanding and who the creditors are. The companies first hurdle is to prove to the court they have enough money to continue operations or otherwise obtain DIP financing.
Beyond that is all becomes a court brokered negotation on re-negotiated costs and writing off what debt they can. Eventually the company comes to a sound restructuring and exits from the oversight of the courts and back into the public realm.

There is no way mesa would survive a charter 11. United, USAirways and Delta all have an out in their contracts if Mesa files bankruptcy. This is confirmed in Mesa 10k filing from last year.