Mesa Air Group, Inc. (fka MESAQ)

[Madclown]

The proceedings today went as expected. The end result of the "so orderdered" and stipulated surrender of the 20 planes is that RACC becomes an unsecured creditor in the amount of $18,753,103. This is because the outstanding loan amount is $32,753,103 and the agreed upon fair value is $14,000,000. This has the effect of reducing equity by $18.75 million, but this has been known about since day one. The total book value of equity, using the 09/30/09 balance sheet from the first-day motions, would now stand at about $87 million. It is only about $1.25 million more equity erosion than was alluded to in the first day motions. If you look at the last bullet point of the document linked in the sticky post #4946 “Mesa Air Group Bankruptcy Case Summary” you will find the following statement which was accurate as of January 5, 2010:

“The current Book Value of the 20 planes subject to potential return to Raytheon as discussed in the first day motions is $16 million. The related loans total approximately $33.5 million. Raytheon will become an unsecured creditor in the amount of approximately $17.5 million.”