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I think that was part of the joke.

 

[quote=OscarOscar;535901]Was their a statement made cause that didn't make any cents.

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Yea......I'll spend time worrying about my proff reading on this rag.....see.

 

You are right. I've dealt with the SEC on businesses before and this is, very much, borderline fraudulent if not completely. There is no, legal, document that JO can produce for current holders or future consideration that would conclude that holding that stock vs. cashing out is a good idea. There is way too much legal disclosure required to make this pig look good.

 

You're a quick one. I guess I'll have to make it a little MORE obvious next time.









OO.

 

The note holders didn't have a say on how XJT pays them. XJT had the choice of paying them cash, stock, or a combination thereof. XJT had said in an SEC filling that their intent was to pay in stock only. The XJT note holders' only option was to take the shares or keep the notes at a higher interest rate. XJT only offered the higher interest rate notes in order to entice some of the note holders to stay put and prevent all note holders from requiring XJT to repurchase and possibly requiring bankruptcy protection because of their current cash position. The note holders never had a say or had a choice in getting paid with cash only. This was decided by a vote of the shareholders. In the end, some note holders requied XJT to repurchase the notes with stock and others opted to take the new notes at the higher interest rate.

 

tpersuit it really depends on the conditions set when the deal is made. If the note holders thought the stock was going to be worth something they'd allow it as payment. Hindsight being 20/20 I bet there are few that would rather eat dog food but it is what it is. Either way I doubt Mesa will be around much longer. I give it two months before drastic events start happening. During 2008 they never released any of their quarterly reports on time. This usually happens for a few reasons. One of which being a nice coverup.

I wouldn't be surprised if JO doesn't get investigated after this. Look for Mesa to come out with one MASSIVE loss at the very end that they can't account for. People will be asking how this debt all the sudden appeared and then they'll probably start digging through JO and his wife's stock purchases and sales along with business practices. They already don't have enough cash on hand to hand all the legal fines. I think JO's way of business right now is simply to jerk around as many people he can so when the penny drops there will be a zillion lawsuits from so many directions that no one will know where to start or be able to trace the money meanwhile he's already out of the country or enjoying life on some retreat of his.

 

You're right, I'm not sure why I thought we repurchased the amount with cash. We did work out a deal with the Note Holders though, because they could have demanded it all paid. We paid off $58.9 million with stock and renegotiated the last 69.3 million at 11.25%.

Aviation Today :: ExpressJet Reports Expiration of Tender Offer and Notes to be Repurchased
ExpressJet Holdings (NYSE: XJT) today announced the expiration and results of its tender offer with respect to $128.2 million aggregate principal amount of its 4.25% Convertible Notes Due 2023.

The Paying Agent, The Bank of New York Mellon Global Corporate Trust, reported that $58.9 million in aggregate principal amount of outstanding notes had been validly tendered for purchase as of 5:00 P.M. Eastern on July 31, 2008. As a result and pursuant to the terms of the tender offer, the company will issue 161,494,295 shares of common stock in payment of the repurchase price for the principal amount of the notes validly tendered and to settle accrued and unpaid interest due August 1, 2008.

Following the completion of the tender offer, the company will have $69.3 million aggregate principal of its 4.25% Convertible Notes due 2023 remaining outstanding. Noteholders of record on August 2, 2008, will automatically receive the benefits of the supplemental indenture that becomes effective the same day. From August 2 forward, the notes will be referred to as 11.25% Convertible Notes due 2023.

 

Toilet, the sad thing is that we could have another Bernard Madoff situation here and the authorities won't do anything until everyone gets screwed below him.

 

If there's any justice in this world, hopefully JO and Madoff will be able to share the same cell.

Can't think of a logical reason to consistently send out late SEC filings, unless there is something Mesa doesn't want the shareholders to see.