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By Mike Mitchell |
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January 6, 2010 - Mesa Air Group, Inc. announced that it has commenced a
financial restructuring through the voluntary filing of petitions to
reorganize under Chapter 11 of the U.S. Bankruptcy Code in the United
States Bankruptcy Court for the Southern District of New York (the
“Court”). During the restructuring, the Company will continue to operate
as normal, without interruption, which includes its code-share
agreements with its partners US Airways, United Airlines and Delta Air
Lines.
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This process will allow us to eliminate excess aircraft to better match
our needs and give us the flexibility to align our business to the
changing regional airline marketplace, ensuring a leaner and more
competitive company poised for future success,” said Jonathan Ornstein
Chairman and Chief Executive of Mesa. In 2005,
“Over the past two years, we have worked closely with our lessors,
creditors and other constituents to restructure our financial
obligations. These efforts have led to the elimination of over $160
million of debt obligations, the return of a number of aircraft, and the
restructuring of inventory management and engine overhaul agreements. We
are nonetheless faced with an untenable financial situation resulting
primarily from our continued lease obligations on aircraft excess to our
current requirements. In addition, this action will give us the
opportunity to reach a more timely conclusion in the litigation with
Delta Air Lines in which
To ensure the Company operates without interruption, |
“We remain committed to our partners and customers by providing
continued low cost regional air service that has permitted
Interested parties can find updates and additional information at the
Company’s website at www.mesa-air.com/restructuring. Imperial Capital is
serving as financial advisor, and Pachulski, Stang, Ziehl & Jones LLP is
serving as legal counsel to the Company and its subsidiaries in
connection with the restructuring.
Statements contained in this press release that are not historical facts
may be forward-looking statements as that term is defined in the Private
Securities Litigation Reform Act of 1995. Forward-looking statements
involve risks and uncertainties that could result in actual results
differing materially from expected results and represent the Company’s
expectations and beliefs concerning future events based on information
available to the Company as of the date of this press release.
The Company undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this press release. Additional information regarding risk factors that may affect future performance at the Company are contained in the Company’s SEC filing, including without limitation the Company’s Form 10-K for its fiscal year ended September 30, 2008. |
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