With that option you most likely won't get anything, depending on where you stand on the creditor ladder. At least with option #1 you can try and sell the shares (which if that happens and mass shares are sold that will drive the price downward) but you get something. Probably more than what you get in BK.






OO.

Mesa has over $500 million in assets, according to their filings. That seems like a lot that can be grabbed up in liquidation.

They can only get what people are willing pay and since a BK court isn't in the business of selling assets I'd bet they only get pennies on the dollar for their assets.

I don't know how much MESA owes in total. I don't know who the creditors, bondholders or shareholders are (I know I am not any of those). Most likely they are not individual people but corporations, funds, etc. I don't know how this is going to play out, but JOe is a c*ckroach and knows how to survive. We'll all have to wait and see.








OO.

The book value of a large portion of Mesa's assets is likely to be greater than the market value. (This is normal under standard accounting rules.) Looking at the most recent financial information available, I believe in a bankruptcy scenario stockholders would get nothing and bondholders would get pennies on the dollar.

Not to mention in March there are more bonds that can become due....the market and investing is a gamble....the 1 thing that is definite IF Mesa declares BK it is GAME OVER!

I hate JO as much as the next former employee, but I can't pick a side on how I would like this to turn out because there is so much for all sides to lose. Now if this resulted in the company continuing without JO and his cronies, then that would be at the top of my wish list!

I find it hard to believe the board of directors hasn't 86'ed him, given his achievement of devaluing the shareholders investment to almost nothing. Does that not raise an eyebrow? It almost smells of some type of fraud.

For the sake of the employees, it's the management team that needs to sink - not the company. Unfortunately, they might be to far gone for a solution that eloquent.

Mesa Board + JO x Money = Fraud.

They have all sorts of side companies together which is why JO is still where he is.

That would be the 50ish airplanes we own (a mix of -200's, -700's and mostly -900's.

Example: One of JO's companies owns the hotel we use in PHX to put up F/A's and pilots during training.

He pays himself, from himself. There are many other such examples.

So I have a question, might be very stupid but I'm not too smart when it come to the SEC and NASDAQ, if MESA's stock ends up sitting below the $1.00 mark and there is not significant trading, which is happening and will most likely sill occur after the new shares come out, won't they be delisted? If someone who has a good working knowledge of this could enlighten me that would be great.

Few of those are owned outright IIRC...they have mortgages. They show up as book value, but if the company shuts down and can't make the payments, the repo man comes around. Hmmm...maybe I could get some side work repo-ing OJ's airplanes when the time comes, that might be fun.

It's rather fun to repo jets! Just make sure the FAA knows (ferry permit) or can never find out. They get picky about whether you've seen the log books!

I think they own a ton of ground equipment in PHX and the associated outstations, that could be where a bunch of the asset money is coming from. At least that's what one CA told me.

According to their most recent annual statement, "Flight Equipment" makes up the majority of company assets. I would take this to mean aircraft, which probably means there are liens against those assets.

The problem with delisting since this meltdown in the markets delisting has been frozen for a period....I am not sure how much longer the clock has got left.

Thought they were already delisted from the NASDAQ. The hits just keep on coming with JO.

its all spelled out in their most recent 10k filing. Ill get it than edit real fast.

Here ya go

According to their last 10k they own

2 CRJ200's
8 CRJ700's
14 CRJ900's
34 B1900's(I believe have been sold since the filing)

6 Hangers (2)Columbia SC (1) Witchita (1) GrandJunction (1) Farmington (1) Dubois

1 Training Facilities in Farmington.

can we have Our DHC8-200's back.

Now I get it! MAGs net value consists predominantly of mortgaged airplanes, hangers, and MAPD! Maybe they can sell the MAPD students as slaves...that's what they were going use them for anyway :rolleyes:

It's interesting to look at mesahub dot com to see Mesa pilots chatter, but it pops up as dontflygo.com? WTH?

The #1 funniest thing I've read today. And that's saying a lot. Three other forums I've been enjoying on one of my last overnights.

Absolutely amazing. You know, we were at one time staying at a hotel in Atlanta for training that was involved with our management. To what regard, I'm not 100% sure. . .but. . .rumor has it that it was financial kickbacks. That ended once the word got out though. Or so I'm told.

hah! :rolleyes:

The guy sure knows how to run a business. . .or manage his little hobby. Anyone know where his family has their plots of graves?

Im crossing my fingers for something else.

What exactly are you hoping for? Another 1500 pilots on the street...

Am I the only one who thinks this Mesa bashing and this thread has gotten way out of hand?

My final word on the issue: JO may be shady businessman, but he is playing within the rules on this one.

If you want to bash someone, it should be places like Key Lime, where jobs where the pilots should be paid by the company and not the other way around.

If there is a need for your flying it will be picked up by another pilot group IE hiring or at least less furloughs somewhere else. Many of us have a vested interest in this outcome so I doubt you'll find an objective statement about the health of MAG on these forums.

I agree. I hope every airline other than MESA goes out of business.

Sorry to interrupt the Mesa Bashing, But I’m just curious to see if those recalls went out to the 20 or so furloughs at Mesa. Has anyone heard if those guys got called back? I heard a rumor that AA sent out a handful of recalls this month (mostly old TWA guys) and another rumor that Frontier is calling back a few. This might just be a slight glimmer of hope in the industry. If these recalls are in fact going on, I doubt it’s attributed to economics…Just normal pilot attrition over the last few months.

Okay, so back to bashing Mesa. My mom is prettier than yours.

There are 64 people on furlough from Mesa and they have not recalled a single person. I'm the 14th to be called and haven't heard anything...

Would you go back? Were the 64 active pilots or still in class when furloughed?

Mesa Pilots at their finest. Congrats lady's and Gent's, you have one great Airline.

Hell no I'm not going back. I'm in training at Mesaba now and had to give up my seniority. (They really had to twist my arm to give that up :p) There were 49 furloughed that were in ground school in July. Then they furloughed another 15 in October that were out on the line. I was one of those lucky 15....

Cant blame him, you all wish him out of his job.

Your Kidding me right!!!!!! You need to get your eyes checked buddy.

You dont get it!

Mesa is a terrible airline, When I was a ramp agent, freedom would land and their force fed release wouldn't show up. You call there dispatch to get one and they would say "we don't fly into there" what kinda crap is that. The pilot group isn't the bad part, and I don't want to see anyone on the street. But If I work for a decent company and there is another company out there with similar badging that does crappy work, it makes us look bad. SO on that note, yeah I wish Mesa would drop off the planet. Like what was said before, that extra flying will be picked up, along with the pilots.

And from what I have heard ( buddy of mine one of the 64 fed) the give their own new hires the run around on training. They never call when classes are changed and they don't rebook classes when they need to be. Makes the pilots have to stay weeks on end at the hotel doing nothing. That Hotel BS makes since now.

What will bondholders due?
 

I agree that according to the debt obligations JO can use stock to pay off the bondholders IF they elect to exercise their puts in Jan/Feb.

However, at the close Friday the 9th, the TOTAL market cap of MESA was $7.52 million and the amount of debt that could come due if the puts are exercised is about $95 million. How can you pay off $95 million with $7.52 million?

I don't know if the bondholders will go to court, but I think they would have a strong equitable argument that stock cannot be used to satisfy the debt. Who knows, however, what they'll do - they may let JO limp along.

Wow.....you can make that statement about almost every airlineout there.

I think the language may require that they accept stock based on the recent price, with no provision to account for a value drop caused by the the issuance of a ludicrous amount of new stock.

But I would sue him too...if I were going to get left holding the short end of that stick I would consider it fraud.

Not really.

Was their a statement made cause that didn't make any cents.

Umm....Preview Post?






OO.