Uh Oh. Mesa just cancelled the note agrmnt
 

Just saw that Mesa cancelled the agreement with the bondholders. I believe that was the one issuing all that new stock?

damn beat me to it heres the link though


Mesa Air Group Announces Termination of Agreements with Certain Holders of Senior Convertible Notes due 2024

What does this mean?

couple things.

1. sounds like JO may have been up to something illegal again...
"In response to a recent regulatory inquiry regarding such exchange agreements"

2. The holders of these notes can now demand payment. Payment JO cant make.

how much was due on these particular bonds?

Here's their money ...... no worries.....



http://www.monopoly-history.com/images/1985money.jpg

Im having trouble finding the press release on these but I believe it was 73 million on Jan 30th and something like 20 million first week of Feb. Anyone have that info?

Strange that there has been no reaction in the price of Mesa stock today.

I meant the press release regarding the exact amount of the notes due.

Real time quotes are delayed a little bit. They issued the release at ~2 pm so they should just now be see a reaction to it. Also keep in mind the stock is SO low right now even this news is already factored into price.

With this news no doubt all of their expenses (fuel, namely) will require cash on delivery to maintain operation. I honestly can't see them continuing operations for long with this news out.

Mesa's stock is trading at 9 cents, it dropped 2 cents today, how could it drop any more?

20%ish drop and going down.

Oh wait, it just went up a cent, now only depreciated by 10%.

Seriously, this is a very bizarre anouncement but don't immediately assume Mesa is going under. We have seen some pretty crazy things happen and they still survive. Not to mention, who wants to see an additional 1300+ pilots hit the street.

Besides, who would we have to bash on these forums if Mesa didn't exist?

Go Jets comes to mind...

When one Mesa's pilots post that their check did not clear, then and only then will Mesa have one foot out the door.

1300 pilots hitting the streets is not that big of deal in the overall schem of things. That's not even 1 % of 1 % of the amount of jobs lost last quarter. Heck, the entire workforce -5k- is not that big of deal. Besides, if/when Mesa dies, the others will pick the flying and most likely hire again. Hence, those guys will be back at work.
As far as JO cancelling the notes, looks like to me he sees the end coming, hence why pay and lose his cash. He's hording and hiding. My 2 cents.

DAL didn't want to cut off MAG to give that flying to someone else. With people trimming flying across the board it's very possible MAG can go down with no inicrease seen at other regioinals... at least on the DAL side.

It's probabaly a big deal if you're one of the 1300. Delta doesn't want to shift regional flying around, they want to do away with it. Additionally, if SkyWest were to take over the United Express stuff were already staffed for it and wouldn't need to hire.

That is quite possible what DAL is going to do. However, I do see their other flying being scooped up by other regionals. If they go away, the vacuum it would create in PHX, CLT, PHL would be tremendous. On that side, there'd be movement.

We get paid Friday.

The MAG PAYROLL SNAFU is a great example of a moron, not a check not clearing.

If you got paid twice, spent the second check, then went into the red when the company took the money back, would you really be that mad? The guy spent money that wasn't his.

'Not that big of deal in the scheme of things' unless you are a pilot with a lot of seniority but don't quite meet the minimums of the majors and have to start all over at XYZ regional airline and need to get more PIC time before you move on. Not to mention, many regionals have furloughs or are overstaffed, they could get more flying and still not have to hire. Don't assume that all the 1300 pilots will find jobs at other airlines.

I know it happens all the time and it is the name of the airline game but it sucks for anyone who is playing musical chairs and is still standing up when the music quits playing.

Last year several airlines went under and that was before the economy was really bad. In fact, I think a majority of them went under before record fuel prices occured. My prediction is we will see as many this year. It will be interesting to see how the cookies crumble.

When Mesa stock hits $.02/share I am gonna buy 10,000 shares. If it goes up great, if Mesa liqidates oh well. I would be glad to see Mesa finally go. I win either way.

I agree there would be a few frames picked up here and there. I don't think we'd simiply see all the flying shifted from MAG to other regionals though.

Maybe Skybus will start back up.

Can it get any lower:rolleyes:

Frontier hasn't gone that low and they've declared BK.

Their BK was triggered by a credit company changing how their tickets were paid for. Now that fuel is down, they seem to be getting by.

I don't understand how creditors are still giving mesa anything..the company is basically worthless!

They don't. They did at one point which is the foundation of this ordeal. They have to pay that money back and now that the tabs becoming due this is going to be very interesting watching JO work out of it.

Thankfully, someone understands this. The big issue is not that Mesa will go under based on poor management. The big issue is the fact that 1,300 of OUR BROTHERS AND SISTERS may be out on the street. The big issue is the fact that 1,300 of OUR BROTHERS AND SISTERS - lose seniority. 1,300 of OUR BROTHERS AND SISTERS will be back on reserve, working weekends, holidays, etc.

I can think of a few that lost Seniority at Aloha. I know it's a bad position and don't wish it on people but you can't expect me to have heart felt sympathy for companies like SkyBus, Mesa/Freedom/Go!, GoJets, etc. These aren't personal attacks against the pilots or FAs but agaisnt the managements that run them. In Mesa's case they (management) have such a stronghold that the only way to get them out of the industry is to watch the company fail all together.

First off, I completely understand where you're coming from EEmbraer. However, I can't feel too sorry for them. 2/3 of the pilot group got in knowing exactly what a scummy operation it was and undercut the rest of us for a quick upgrade. The other 1/3, the old timers from pre JO days, had plenty of opportunity to get out into another decent job at a major, charter, or just about anything else and probably still have it better off than they have it now. Sure there may be a handfull that truly will get screwed in this deal but the vast majority really have no reason for us to pity them.

For everyone complaining about our plight at the moment please come to realize that the ENTIRE country is feeling it just as bad if not worse than us right now. Wages have stayed stagnant just like us for the majority of workers and yet inflation crept in for over 2 decades at the same time. Compared to, say, the auto industry we should thank our lucky stars we only have the furloughs that we have now.

I agree, MAG pilots knew what they were getting themselves into but also realize that we work for a company for different reasons. Some want to skip the CFI ordeal, spend $20K in Farmington, NM and sit in the right seat of a shiny jet at 300 hours. Others work at a crap company because they are based in their hometown and want to see their family as much as possible. Sometimes that is more cost/time effective than commuting and having a crash pad.

Why would a struggling company try to cancel an agreement that was in their interest to defer the payment? Even if they were going to file Ch. 11/7, it doesn't make sense.

Legality issues

This is all true but in any case they have to realize they run an abnormally high risk of the company failing from unscrupulous management. Now if this happened where say, SKW just up'ed and folded because the CEO stole millions, that would be worth pitying the employees. But MESA's failings could be seen from space for over a decade.

Mesa will NEVER go down. I'm sure no one will admit it but a lot of people will be celebrating the day they go under, if that EVER happens.

Pretty bold statement! NEVER? Are you sure? Willing to put all your money in the penny stock? You might become a millionaire if you are correct. Not many are as confident as you and that is why the stock is trading for 9/10 cents right now.

No one is immune in this economy.

Something's up? Hmmmmm? JO has somethig up his sleeve. He knows something is coming that would be detrimental to the deal or will be something a whole lot better for his pockets than the current deal.

Duck I know a few Midwest Pilots who feel the same about RAH the same way you feel about the Aloa Go deal Yea I know different story but Many Midwest Pilots feel that RAH is becoming the Next Mesa.

Dont be so quick to point fingers.. I have said it about 4 times already Mesa winning the Delta issue is in the intrest of all Regionals if you guys cant see that oh well.

Fly safe yall